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In 1994, Hyundai's Department of Construction Equipment merged with HHI's Construction Equipment Division. This division of HHI manufactures over 92 models in construction and industrial machinery including mini excavators, crawler excavators and wheel excavators, wheel loaders, forklifts, skid steer loaders, and hydraulic machinery. In 1988, Hyundai developed its very first brand of excavators weighing in at 21 and 29 tons.

HHI's Construction Equipment Division's products are sold through a global network of 412 distributors in over 90 countries with operating subsidiaries in Europe, Japan, the U.S., and China. Since 2002, Hyundai has placed top in the market for excavator sales in China.[1]

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[edit] History

In 1934, Chung Ju-Yung, the son of peasant farmers, made his entry into the business world at the young age of 19 working at a rice shop, "Bokheungsanghwoe," in Seoul, Korea. In 1937, he opened his own rice shop, "Gyungilsanghwoe," after acquiring the former shop.

[edit] Laying the Foundation of Hyundai

During the war, Japanese occupation of Korea made it illegal for Koreans to own food businesses such as rice shops. Chung Ju-Yung was forced to close his rice shop and explore other business opportunities. He chose to become a truck driver and start a delivery service. While operating the truck delivery business, Chung Ju-Yung learned how to repair trucks. Armed with this new knowledge, he eventually opened an automobile repair shop called "Ah Do Service" based in Seoul in 1940. In 1946 he would go on to establish another auto repair shop, Hyundai Auto Service. The business serviced trucks for the U.S. Armed Forces and was both successful and profitable, playing a key role in helping Chung Ju-Yung create and finance another business, the Hyundai Civil Works Co.[2]

[edit] Hyundai Construction: The Growth Years

The late 1940s through to the 1950s sparked intense growth for Hyundai, particularly in the construction industry. In 1947, Chung Ju-Yung founded the Hyundai Togun as a construction company. In 1950, Hyundai Togun was renamed Hyundai Construction and Engineering Co., after merging the Hyundai Auto Service and Hyundai Civil Work's divisions together. In the same year, Chung also established Hyundai Commercial Transportation Co.

Over the next decade Chung worked methodically to lay the entrepreneurial foundation of a thriving multifaceted company with the bulk of the growing enterprise's business coming directly from the construction industry. For example, Hyundai would remain the U.S. Army's primary contractor over the course of the Korean War as well as for many post-war reconstruction projects including building the first bridge over the Han River. By 1960, Hyundai Construction ranked first in the construction industry based on the sheer volume of orders received. In 1965 Hyundai Construction became the first Korean construction company to win notable foreign contracts outside the country. This included its first foreign contract to build Thailand's Patani Naratiwat Highway in 1956. Other foreign projects included building residential complexes in Guam, and a harbor in Vietnam.[3]

[edit] The Creation of Hyundai Motor Co.

In 1967 Chung, along with his brother, Se-yung Chung, launched the Hyundai Motor Co. and began an eight-year vehicle assembling process that ran from 1968 to 1976. This involved entering into a licensing agreement with auto manufacturer Ford, whereby Hyundai was to assume responsibility for assembling Ford's compact cars on a semi-lock down basis. Ford provided Hyundai with "packaged" technology, giving it access to blueprints, technical specifications, production manuals, and training for Hyundai engineers. This agreement worked entirely to Hyundai's benefit, providing the company with key migratory knowledge that inevitably assisted it in moving forward in the auto assembly business. As a result, the company produced the Ford Cortinas and Fort Granadas for South Korea's domestic market up until 1976. In addition, in 1973, the Korean government drafted a plan called the 'The Long-Term Plan for Promotion of the Automobile Industry' ordering four automobile companies to submit detailed plans to develop Korean cars by 1975. Hyundai was one of these companies in addition to Kia, Daewoo and Ssangyong. In the plan, Hyundai projected a new plant could pump out 80,000 Korean cars, but actual production at the plant yielded a turnout of only 5,426 cars. In the same year, Hyundai approached 26 firms from around the world to acquire a varying range of technologies in relation to auto manufacturing. By 1975, Hyundai was manufacturing the Pony. The car was built with 90 percent domestic content and made Korea the second nation in Asia to have its own domestic automobile.[4]

[edit] Establishment of Hyundai Heavy Industries

By the 1970s Hyundai was also branching off into other business opportunities such as shipbuilding. Chung, with a shipyard construction plan and a photograph of the proposed shipyard site in Ulsan Mipoman, set out to secure capital investment funding. The result was approval from London's Barclay's Bank and the British Export Credit Guarantee Department and a bid to build two 260,000-ton oil tankers. In March 1972, Hyundai Heavy Industries was formed and later renamed Hyundai Heavy Industries Co. Ltd. In 1975, the company won over $900 million in construction contracts with Saudi Arabia commissioning it to build a port at Jubail.[5]

[edit] The Company Today

Today, Hyundai Heavy Industries is independent from the Hyundai Group. According to the company's website, HHI employs 24,830 individuals with reported total new sales in 2007 grossing US$27 billion and projected sales for 2008, estimated to be near US$27.4 billion. HHI has a goal to become one of the world's top five construction equipment suppliers by 2010.[6] On the Fortune 500 List, HHI was ranked 422nd overall, and in 6th place, ahead of Komatsu, in the industrial and farm equipment industry with annual revenues of US$41,517 million in 2006.[7]

[edit] Equipment List

[edit] References

  1. Construction Equipment Division. Hyundai. 2008-09-23.
  2. Hyundai History. Santafemods. 2008-09-23.
  3. Hyundai History. Santafemods. 2008-09-23.
  4. Hyundai History. Santafemods. 2008-09-23.
  5. Hyundai History. Santafemods. 2008-09-23.
  6. Heavy Industries. Hyundai. 2008-09-23.
  7. Fortune 500. Money CNN. 2008-09-23.

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