News service and business centre for materials handlingHOME

Doosan buys Daewoo (DHI)

Thursday, 26 May 2005 ( #210 ) - SEOUL, Korea, South
News Story
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) ( News #192).

Doosan purchased the shares from the government-owned Korea Asset Management Corporation and Korea Development Bank after a protracted bidding process( 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.
Discuss News stories in the Discussion Forums!
Forkliftaction Media Pty Ltd
PO Box 1439
Milton QLD 4064
About Forkliftaction
The Forkliftaction Team
Privacy Policy
Site Map
Business Directory
Discussion Forums
Industry News
Events Calendar
Jobs & Resumes
Photo Galleries
Blog articles
Our Bloggers

Industry Brands
Company Index
Regions & Countries

Advertise on Forkliftaction
Editorial Features / Calendar
Featured Businesses
Past News Editions
Industry Associations
Storing your login information automatically.

When you select the 'Remember me' option, your login information will be stored on your computer in the form of a cookie. When you visit again, the stored login information will be retrieved automatically and you will not have to submit your login parameters (email address and password) each time you want to visit our members-only pages.

A cookie is a small piece of data that is sent to your browser from a web server and stored on your computer's hard drive. A cookie can't read data off your hard disk or read cookie files created by other sites. Cookies do not damage your system.