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| Hyundai Construction Equipment's 50-ton large excavator exported to Indonesia / Courtesy of Hyundai Construction Equipment |
By Kim Jae-heun
Hyundai Construction Equipment's (Hyundai CE) intermediate holding firm Hyundai Genuine will focus on fostering its construction business in Indonesia to make it a regional hub in order to target the Asian market, the company said Wednesday.
It has recently established a Parts Distribution Center (PDC) in Jakarta and started its operation.
PDC is a logistics hub that secures and quickly supplies parts for construction machinery such as excavators and wheel loaders. The machinery is currently in operation in Hyundai CE's key sales countries such as the United States, China, Belgium, the United Arab Emirates and Brazil.
The company's ninth overseas PDC in Indonesia handles about 9,000 kinds of parts. It will help drastically reduce their product procurement periods from the previous standard of five days to two days.
Furthermore, the delivery cycle for regular parts orders from PDC in Jakarta will also expand from once a month to twice a month ― improving customer convenience.
Indonesia is an important market for Hyundai CE as the country has a huge market, which has seen it sell more than 9,000 construction machines annually over the past 12 years. About 15,000 machines are expected to be sold every year in Indonesia for the next five years.
"Asia is expected to become a new arena of competition for many construction machinery companies in the future due to its abundant resources and big populations. Here, Indonesia is a very important region to target in the Asian market and the company plans to expand its business in the country with its up-to-date technology and quality products," a Hyundai Genuine official said.
Hyundai Doosan Infracore also plans to establish an overseas branch in Jakarta by the end of February and start building a sales network to target the local market.
The company will erect its own PDC in May to improve its own parts procurement capabilities and form a parts supply cooperation system with Hyundai CE.
Next September, Hyundai Doosan Infracore will participate in Asia's largest international mining equipment exhibition known as Mining Indonesia and introduce its new brand Develon.
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