The new company logo.

Doosan Heavy Industries Inc has acquired a 51 per cent controlling stake in forklift manufacturer Daewoo Heavy Industries & Machinery (DHI) for 1.69 trillion won (USD1.7 billion) (Forkliftaction.com News #192).

Doosan purchased the shares from the government-owned Korea Asset Management Corporation and Korea Development Bank after a protracted bidding process(Forkliftaction.com News #182).

The company announced a new board of 13 directors (two of whom were from the old company) and a new name, Doosan Infracore Co Ltd, following an extraordinary general shareholders' meeting at the Korea Chamber of Commerce & Industry.

Doosan Heavy Industries chairman Park Yong-sung is now chairman of Doosan Infracore and Doosan Mecatec president Choe Sung-chul is president and CEO.

According to a statement by Doosan Infracore, Doosan paid two times the market value for DHI and has stated its intention to tap the growing overseas demand for Daewoo forklifts, excavators and other earthmoving equipment.

Doosan Infracore and Doosan Heavy Industries president Park Yong-sung said:
"Since this is the first year of Doosan's globalisation, we should not be content with being the best in Korea, but become number one in the global market. Research and development and new facilities investments will be increased and links will be made between Doosan Infracore and Doosan Heavy Industries to boost corporate stature overseas."

The company has a 58 per cent share of the domestic forklift market in Korea, but 65 per cent of total forklift production is exported to more than 90 countries (40 per cent to Europe).

Forklifts will now be sold in Europe under the Doosan-Daewoo brand, while the domestic market will see the introduction of the sole Doosan name.

Doosan Infracore's current head office in Yeoeuido, Seoul, will move to the Doosan Tower, at Dongdaemun, Seoul, around the end of May.

Doosan, founded in 1896, made its name producing OB Beer before adding construction, engineering and electronics to its portfolio. Doosan is made up of 20 affiliate companies involved in activities ranging from power plant construction, water desalination and diesel engine manufacturing to publishing, shopping malls and professional baseball.