South Korean companies, led by Doosan Infracore Co., continued to expand their presence in China's excavator market, as the world's No. 2 economy increased spending on infrastructure, industry sources said Saturday.
According to market watchers, Doosan Infracore sold a total of 554 excavators in China last month, garnering a 7-percent market share -- more than double what it was a year earlier.
Hyundai Construction Equipment Co., an affiliate of South Korean shipbuilder Hyundai Heavy Industries Co., sold 297 units in China last month, marking a 281-percent increase from the previous year.
China's excavator market has been growing sharply thanks to the country's ongoing railroad, highway and airport projects in lower-tier cities, as well as continued urbanization. In particular, China's massive "One Belt, One Road" infrastructure drive aimed at increasing its economic clout in Asia is stimulating demand for excavators.
China accounts for roughly a third of the world's construction equipment market.
In the first seven months of 2017, over 75,000 excavator units were sold in China, easily surpassing the 70,000 units sold throughout 2016. The same industry sources expect the sales of excavators to top 100,000 units this year.
Aided by strong excavator sales in China, Doosan Infracore's bottom line also improved.
In the first half of the year, Doosan logged an operating income of 363 billion won (US$322 million), up 28 percent from a year earlier. Its sales surged 9 percent on-year to reach 3.34 trillion won. (Yonhap)