Hyundai has spun off its forklift division in Europe

Hyundai Heavy Industries has announced the spinoff of the Construction Equipment division from the mother company, Hyundai Heavy Industries Co., Ltd.

The new spinoff, Hyundai Construction Equipment Co., Ltd, assumed operation this month as part of a restructuring plan which was started last year.

The company says the spinoff offers "great possibilities and an improved agility". Despite its Hyundai Construction Equipment name, the new unit is focused on both forklift and construction machinery "with the same goal - to grow the marketshare".

Hyundai says that the name of the company will change in the course of this year to Hyundai Construction Equipment Europe.

"Hyundai Construction Equipment Europe has a strong commitment to growth. This year, the European HQ will move to Tessenderlo, Belgium. This EUR30 million (USD32.6 million) investment project will enable Hyundai Construction Equipment to increase its success in Europe. On 81,000 sqm of land, a new headquarters, a new warehouse, a training facility, an event hall and a showroom are now under construction. This new facility is an excellent step forward for the European division."

The company says its European strategy for 2017 is to focus on the mini-excavator market and wheel loaders active in the recycling and related industries. In the forklift business division, priority will be given to the heavy diesel forklift market and the warehousing range. Both divisions will focus more on parts sales.

"In order to gain success in these areas, Hyundai Construction Equipment Europe will further expand the dealer network, widen the product range and focus on key customers.

"Hyundai's loyalty and support for its European dealers, customers and business partners has paid off in the past and will continue to do so in the future," according to a company statement.