News

Doosan builds second Chinese forklift plant

Over 1,000 manufacturing jobs will be available when Doosan Infracore completes its second forklift plant in Suzhou, China, in August 2009.

The forklift manufacturer held a groundbreaking ceremony in Suzhou, Jiangsu province, last week, for a production complex dedicated to forklift and compact excavators. The complex will be run by Doosan Infracore China Co and Doosan Infracore (China) Investment Co.

Doosan already has a plant for forklifts and mid-sized and large excavators in Yantai, China. Managing director Byunghoo Kang tells Forkliftaction.com News the increased capacity will boost the company’s global competitiveness.

“The drive to boost global sales will be strengthened as well. Importantly, both complexes (Yantai and Suzhou) will have optimal production systems and operating at two locations will foster greater specialisation.�

Kang explains that China’s rapid growth and logistics industry demand have increased forklift demand by about 30% annually.

“Last year, 110,000 forklifts were sold in China. The government has also been promoting urbanisation and farming community development, and annual compact excavator sales have grown by an average of 60% per annum,� he says.

Doosan will invest USD192 million to build the new complex located on a 240,000m² site. Initial production, planned to start in the first half of 2009, will total about 20,000 forklifts and 10,000 compact excavators annually. This is expected to grow to 44,000 forklifts and 31,000 compact excavators by 2013.

Most of Doosan’s forklift range will be produced in Suzhou and about half of them are planned for export. The site will need about 1,100 new employees once it is operational, Kang says. Construction on the complex began in January.

According to a Doosan spokesperson, Suzhou is China’s most advanced industrial zone with excellent access to overland and marine shipping.

“It is near Shanghai, where China’s demand for forklifts is highest, as well as south China, where most of the compact excavators are sold. Therefore, Doosan Infracore stands to save money by producing at Suzhou,� he says.

Doosan news

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Doosan buys Bobcat

Doosan Group, which recently celebrated its 111th anniversary, has transformed itself from an old-world business into one of the fastest growing and most dynamic companies in the new millennium. In 2007 Doosan Infracore had completed the acquisition of one of the major ompetitors of Compact Construction Equipment; Bobcat, Utility Equipment and Attachments from Ingersoll Rand Company, Ltd. Yongmaan Park, Vice Chairman of Doosan Infracore, has discussed two key elements of any successful merger and acquisition strategy; upgrade your own company first to be able to manage best-in-class global businesses and develop a crystal clear image of success after acquisition. With the purchase of Bobcat, Doosan Infracore has now taken a global position in the construction equipment sector of 7th in sales as opposed to 19th prior. The Bobcat brand not only increases recognition but enhances the competitiveness of the Doosan name.

The Bobcat businesses bring knowledgeable and extremely talented people, including senior executives and specialists, with vast amounts of experience in their respective fields. Bobcat machines are manufactured in seven factories in five North American, European and Asian countries. Doosan will now have a combined network of over 3,500 dealers worldwide and 20 manufacturing plants in the U.S., Europe, China, and Canada. The combined product lines will allow Doosan Infracore to compete head to head with the world’s largest players.