CNH Industrial makes mini-excavator deal with Hyundai Heavy Industries
Hyundai Heavy Industries has entered into an exclusive agreement with CNH Industrial to collaborate on the production of mini-excavators.
Under the ten-year deal, Hyundai Heavy Industries grants global manufacturing licensing, OEM supply, component supply and spare parts supply to CNH Industrial.
Mini-excavators up to five tonnes will be manufactured and sold by CNH Industries, with those above five tonnes to be supplied to CNH by Hyundai as complete OEM models. The two companies will also begin a joint development program for future mini-excavator models. Mini-excavators rolled out under the agreement are expected to hit the global market in 2017 under the Case Construction Equipment and New Holland Construction brands.
"This relationship brings together the know-how and expertise of two leading global construction equipment manufacturers, allowing us to take advantage of synergies in terms of technology selection and adaptation, component sourcing, and research and development costs," CNH Industrial chief executive officer Rich Tobin says.
"Our ability to manufacture and source from our geographically complementary industrial base will allow for scale advantages in product costs to be realized," Tobin says.
Representatives from Hyundai Heavy Industries said the agreement reflected increasing demand globally for mini-excavators.
"We have noticed that the global demand for the mini-excavator market has been more stable than the bigger-sized construction equipment, and we also expect that the demand continues to increase for years to come," Hyundai Heavy Industries chief operating officer SG Rhee says.
"In view of the trend, we come to a conclusion that the alliance with CNH Industrial which has multiple brands including Case Construction Equipment and New Holland Construction will bring a win-win solution for both companies," Rhee says.
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