▶ Securing major orders for 60 heavy excavators including 34-ton and 22-ton models in Sudan
▶ Diversifying sales channels and expanding the sales network by tapping major dealers
▶ African construction market forecast to be valued at KRW 100 trillion by 2029, fueled by robust market demand
HD Hyundai Construction Equipment has signed a contract to supply 60 construction machines—including six 34-ton large excavators and 36 22-ton medium-sized excavators—to Sudan in Africa, the company said on March 20, 2024 (Wednesday).
The company's success in securing new orders in Sudan is encouraging as it marks the first major re-entry by a global construction equipment brand into the market since the end of the country's civil war.
HD Hyundai Construction Equipment's excavator sales in Africa plummeted by nearly half from around 500 units in 2021 to 2023 due to the COVID-19 pandemic but are showing signs of recovery this year. The company expects a 50% or so increase in first-quarter sales in Africa compared to the same period last year, with full-year performance also seen to rebound to near pre-COVID-19 levels.
HD Hyundai Construction Equipment is diversifying its range of sales channels to boost revenue and identifying major dealers to reinforce its sales network. The company has appointed a regional distributor to handle sales in seven West African countries including Mauritania and has signed new dealer contracts in South Sudan, Ethiopia, and other East African countries in the first half of this year.
Global research firm Mordor Intelligence estimates that the African construction market will grow at an average annual growth rate of 5.07% from approximately USD 58.4 billion (KRW 78 trillion) in 2024 to USD 74.8 billion (KRW 100 trillion) by 2029.
“In preparation for the global economic recovery, it is necessary to enter emerging markets preemptively including Africa. We will expand our lineup of large construction equipment to target customers in our main markets, including our sales network by finding new dealers,” HD Hyundai Construction Equipment officials said.
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■Photo material: 22-ton excavator (model name: HX220HD) manufactured by HD Hyundai Construction Equipment and supplied to Sudan in Africa.