▶ At the headquarters building of Hyundai Doosan Infracore in Incheon, Hyundai Genuine holds a special ceremony marking the first anniversary for the launch of three construction equipment affiliates.

- Listening to a guest lecture on international affairs in the wake of Russia’s War on Ukraine and debating how to cope with the headwinds;

- CEOs of Hyundai Genuine, Hyundai Doosan Infracore, and HCE went on onsite tours accompanied by labor union representatives.

▶ Forging ahead to lay the groundworks to maximize synergies and formulate a strategy to deal with long-term slowdown of the Chinese market for the next year

“The time is now to ramp up efforts to join the global top-5 ranks by the first half of next year.”

Hyundai Genuine President Cho Young-chul was cited saying this at the corporate ceremony to mark the first anniversary for the launch of three construction equipment affiliates. He also stressed the importance to rehaul employees’ mindset, improve the organizational culture, establish a mid-to-long-term growth strategy, and expedite integrated synergy.

On Friday, August 19, the three construction equipment affiliates of Hyundai Heavy Industries Group held a special ceremony to mark the first anniversary of the three affiliates at Hyundai Doosan Infracore’s head office in Incheon with about 50 executives in attendance, namely Vice Chairman Sohn Dong-youn, Presidents Cho Young-chul, Choi Cheol-gon, and Oh Seung-hyeon, major directors, Hyundai Doosan Infracore Labor Union Head Yu Jun-mo, Chief of Construction Equipment Subsection Im Yeong-mo, among others. Other employees watched the event proceedings broadcasted live on YouTube.

The event featured a guest lecture by Prof. Ryu Han-su from Sangmyung University, an expert on Russia, awards presented to employees, and onsite tours. The guest lecture was on the background of the outbreak of Russia’s war on Ukraine and how the international situation will change in the future.

The lecture was organized to address the need to devise a strategy in response to the headwinds of the regional situation, including Russia and Ukraine, where construction equipment made by HCE and Hyundai Doosan Infracore are sold. The key members the three affiliates held a separate session to exchange relevant views afterward.

At the awards ceremony for those that have contributed to creating synergy for joint operations of the three affiliates, purchasing groups and AM (after market)/ PS (product support) groups received the awards. This year, they are expected to create synergies worth 130 billion won. In addition, awards were also presented to three employees for their outstanding contributions in the domains of changes in design for joint use of parts, reduction of transportation charges, and reduction of logistics consignment charges.

As a representative for the CEOs of the three affiliates, Hyundai Genuine President Cho Young-chul took time to share future strategies after delivering his opening remarks to commemorate the third anniversary. He stated, “To us, the past year was a time spent to lay the groundworks to maximize synergy shared among the three affiliates,” adding that “There are headwinds facing relevant management situation, based on negative factors such as the rise in interest rates and raw material prices and the drawn-out recession in China. We must make every effort to achieve our goal of joining the global Top-5 ranks by the first half of next year.”

To that end, Mr. Cho Young-chul asked that all employees should renew and realign their mindset as if the Company has gone into emergency mode. He also promised to improve in earnest the Company’s organizational culture including saving on time by minimizing routine meetings and simplifying the reporting system to facilitate prompt and efficient decision-making. He added that he would come up with a mid-to-long-term growth strategy soon, such as improving product portfolios and adopting differentiated strategies for overseas expansion with the aim of growing as a market leader.

Lastly, he expressed that “the Company must position itself with long-term, unmatched competitiveness to last for the next 100 years through ramped up efforts in all fields including purchase and technological development.”

Following the ceremony, Vice Chairman Sohn Dong-youn, the three CEOs, and Labor Union Heads of Hyundai Doosan Infracore and HCE, planted a persimmon tree together at Core Park in the Incheon factory, as a symbol of the integration of the three affiliates. Then, they toured the construction equipment and engine factories, encouraging the employees.

[Captions]

The three CEOs and Hyundai Doosan Infracore Labor Union Head Yu Jun-mo look around the Incheon factory of Hyundai Doosan Infracore. [President Cho Young-chul (fourth from left), Vice Chair Sohn Dong-youn (fifth from left), President Choi Cheol-gon (second from left), President Oh Seong-hyeon (third from left),  Hyundai Doosan Infracore Labor Union Head Yu Jun-mo (far left), and Mr. Im Yeong-mo, Chief of Construction Equipment Subsection (far right)].

The three CEOs and Hyundai Doosan Infracore Labor Union Head Yu Jun-mo look around the Incheon factory of Hyundai Doosan Infracore. [(President Cho Young-chul (third from left), Vice Chair Sohn Dong-youn (far right), President Choi Cheol-gon (far left), Hyundai Doosan Infracore Labor Union Head Mr. Yu Jun-mo (fourth from left), and Mr. Im Yeong-mo, Chief of Construction Equipment Subsection (fifth from left)).

President Cho Young-chul of Hyundai Genuine and Hyundai Doosan Infracore delivers a commemorative speech at the special ceremony marking the first anniversary for the launch of the three construction equipment affiliates.