HD Hyundai Construction Equipment has transformed its Ulsan campus into a smart factory.
▶The company has invested approximately 200 billion won to modernize the facility and increase production capacity by 56% to 15,000 units.
▶The introduction of welding robots and AI-based quality inspection systems will enhance productivity by 20% and reduce production time by 35%.
▶This facility will serve as the global production hub for the company’s subsidiaries, functioning as a “mother plant.”
▶HD Hyundai Chairman Kwon Oh-gap stated, “Our goal is to manufacture globally competitive products from this advanced and secure production hub.”
On Tuesday, May 20, HD Hyundai Construction Equipment launched its smart factory, which will act as a global production hub at the Ulsan Campus in Dong-gu, Ulsan city, Korea.
The ceremony was attended by over 400 people, including HD Hyundai Chairman Kwon Oh-gap, Senior Vice Chairman Chung Ki-sun, HD Hyundai XiteSolution CEO Cho Young-cheul, and HD Hyundai Construction Equipment CEO Choi Cheol-gon, along with local and international dealers, partners, and customers.
Since 2023, HD Hyundai Construction Equipment has been executing the Advancement Project, which involves a substantial 200 billion won investment to revamp its existing Ulsan plant for facility upgrades and increased production capacity.
This ambitious project merged Plant 1 and Plant 2, which are situated on a sprawling 234,710 square meter (71,000 pyeong) site, into a single, cohesive facility. Enhancements include ▲the expansion and reorganization of production lines, ▲the construction of a quality assurance center and a new receiving building, as well as ▲a new office structure, ultimately transforming the Ulsan plant into a smart factory.
HD Hyundai Construction Equipment streamlined production and logistics under an integrated factory system and introduced a real-time product tracking system to optimize workflow and maximize efficiency.
The introduction of welding robots and vision sensors on the body welding production line enhances both productivity and quality consistency. Additionally, the incorporation of unmanned transport vehicles (AGVs) and AI-based quality inspection systems in the assembly line will increase automation.
As a result, labor productivity is expected to improve by approximately 20%, and the time required to complete each product is projected to decrease by around 35%. Additionally, the annual production capacity for medium to large excavators and wheel loaders will increase significantly, rising by 56% from 9,600 units to 15,000 units.
HD Hyundai Construction Equipment is planning to develop its Ulsan Campus, which has been transformed into a smart factory, into a global production hub referred to as the "Mother Plant." The company aims to strengthen connections between this hub and its major overseas production affiliates and customization centers located in the United States and Europe.
Chairman Kwon Oh-gap of HD Hyundai stated, “The new factory, transformed with a smart and safe production system, aims to become the world's leading production hub, integrating advanced technology and environmental sustainability.” He also emphasized, “As representatives of the nation, we must embrace our mission and produce products that can confidently compete on the global stage.”
CEO Choi Cheol-gon of HD Hyundai Construction Equipment stated, "The Ulsan Campus has been transformed into a smart factory, significantly improving its quality competitiveness. We are dedicated to providing top-tier products that will lead the construction machinery sector, including next-generation models."
On the same day, HD Hyundai Construction Equipment also held the “Smart Factory First Unit Delivery Ceremony.” They delivered five units, including the 40-ton class excavator first introduced at the 2025 Seoul Mobility Show, the 125-ton class ultra-large excavator, and the 35-ton class large wheel loader, to major dealers across Korea, the United States, Europe, China, and Indonesia.
■ Photo 2
HD Hyundai Construction Equipment held a ceremony on Tuesday, the 20th, to mark the completion of its smart factory at the Ulsan Campus. The attendees took a commemorative photo, featuring (from left to right): Cho Young-cheol, CEO of HD Hyundai XiteSolution; Chung Ki-sun, Senior Vice Chairman of HD Hyundai; Kwon Oh-gap, Chairman of HD Hyundai; and Choi Cheol-gon, CEO of HD Hyundai Construction Equipment.
2025.05.20