Doosan Infracore is carving its own niche as one of the world's largest construction equipment makers. Part of Korea's Doosan Corporation, the company manufactures construction equipment, machine tools, and engines sold under the Doosan, Bobcat, Montabert, Geith, and other brand names. Its wide selection of products includes excavators, wheel loaders, diesel engines, boring machines and compact construction equipment. The company has operations in more than 100 countries, some 60 subsidiaries, and a sales network consisting of 4,000 dealers. Its Ansan Parts Center acts as a hub for global parts distribution. Doosan Heavy Industries & Construction, a Doosan Corp. subsidiary, holds a 39% stake in the company.
In its drive to become one of the world's top construction equipment manufacturers, Doosan Infracore has in recent years acquired construction and other equipment manufacturers operating outside of its native South Korea. Its acquisitions of companies like Bobcat (North America), Advanced Technology Lubben (German material handling equipment maker), and Moxy Engineering (Norwegian dump truck manufacturer) have boosted the company's global market presence and placed it among top construction equipment manufacturers. And while North America and Europe remain attractive targets for Doosan Infracore's investment, emerging markets like China, the Asia-Pacific region, and South America are also key areas of investment for the company. Revenue from China and Asia-Pacific customers grew significantly in 2010 and contributed to the larger uptick in Doosan Infracore's consolidated revenues and profits.
Recent sales increases from customers in China (brought on by economic growth and expanding construction activity) have Doosan Infracore increasing its operations in the country. For instance, it recently bolstered its engines business after creating a joint venture with Xuzhou Construction Machinery Group. The joint venture will manufacture diesel engines for construction machinery, large trucks, and power generators in China. The new facility is expected to commence operations in late 2011.
Increased construction and mining activity in South America is also catching the company's eye. Among its investments in the region, the company is building a new excavator factory in Brazil that is scheduled to open in 2012. As part of its growth strategy, it intends to make additional forays into Brazil and other South American market in coming years.
Doosan Infracore's sales from customers outside of Korea exceeded 55% of its total revenue in 2010; it aims to push the percentage up to 90% by 2015 through continued investment in, and collaboration with, foreign companies. – less