Two years after establishing Doosan Industrial Vehicle (DIV), record sales and operating profits have led Doosan to restructure the affiliate company by setting up a new company that can draw on the financial clout and synergies of the parent company.

"We are very pleased with the move," says managing director of overseas sales Kun H Lee. "Doosan Industrial Vehicle has continued its impressive growth with the introduction of new systems, research and development, and our growing global distributor network."

The formation of a new forklift business group within the Doosan Corporation follows a successful period for DIV as an affiliate company formed in conjunction with Standard Chartered Bank, which saw a new product focus and the removal of non-forklift-related costs (Forkliftaction.com News #512).

DIV now has total assets amounting to USD370 million and 2012 operating profit of USD32 million from revenues of USD600 million.

Doosan will acquire DIV from UK-based private equity fund Standard Chartered Private Equity and DIP Holdings, a Korean investment holding company and subsidiary of Doosan Corporation, for USD200 million.

Under the new structure, Doosan expects to retain its forklift focus and develop models for overseas expansion, including an upgraded electric range and models equipped with Doosan's own engines.

To illustrate the company's growth, in 2010, sales revenue totaled USD430 million; in 2011, USD560 million; and in 2012, USD600 million. Doosan Industrial Vehicle's network spans 355 dealers in 95 countries.

"We have focused on creating mutually valuable relationships with our distributors and stakeholders. Operations are highly streamlined and the enhanced efficiencies have enabled us to introduce new products and increase profitability substantially," Lee says.

The new business group comes into operation on 1 September with no immediate changes to day-to-day operation.

A company spokesman tells Forkliftaction.com News that the restructure will not affect current employees.

"This is not a cost-saving exercise, although the additional spending power and credit facilities provided to the core Doosan business may reduce borrowing costs if they were needed for future investments," he says.