▶ To be deployed in public works projects for flood prevention and infrastructure safety ▶Sales and service strategies tailored to the archipelagic nature of the Philippines prove effective ▶Plans to expand market share with high-quality products manufactured at global hubs HD Hyundai Construction Equipment has demonstrated its global market competitiveness by securing a large-scale construction equipment supply contract at the beginning of the year. The company (CEO Choi Cheol-gon) announced on the 19th (Sunday) that it had recently won the bid for medium-sized excavators tendered by the Philippines Department of Public Works and Highways (DPWH). The order includes a total of 122 units: 48 units of 21-ton excavators and 74 units of 22-ton excavators, equivalent to 36% of the company's total sales in the Philippines last year. The 22-ton excavator model, awarded in the contract, features an H-type undercarriage frame structure, which ensures exceptional torsional rigidity and impact absorption, enabling stable performance even in high-load operations. Additionally, a precision-controlled hydraulic system enhances fuel efficiency and work productivity. HD Hyundai Construction Equipment plans to supply these units to the DPWH from this month through March. The equipment will be deployed for flood prevention works along the Labangan River on Mindoro Island in central Philippines. Mindoro Island frequently suffers from flooding and river overflow due to heavy rainfall. To address these issues, the Philippine government is undertaking infrastructure projects such as constructing embankments, river maintenance, and expanding drainage facilities to protect regional safety and infrastructure. The company has strengthened its localized sales and support by strategically placing sales offices on major islands, considering the geographic characteristics of the Philippines as an archipelago. This locally tailored sales and service approach has been evaluated as a key factor in securing this contract. Additionally, the stable logistics network established through the parts supply center of the neighboring Indonesian subsidiary also positively contributed to winning the order. Building on this contract, HD Hyundai Construction Equipment plans to actively target infrastructure and resource development demands in major Southeast Asian countries, including anticipated investments in public infrastructure projects following the Philippine general elections in May, to further expand its market share. A representative of HD Hyundai Construction Equipment said, "The quality competitiveness of our medium-sized excavators, capable of stable performance even in challenging terrains, has been recognized. We will continue to expand our global market share with high-quality products manufactured in Korea, India, and China." ■ Photo Caption: 22-ton excavator (HX220HD) supplied to the Philippine government by HD Hyundai Construction Equipment

HD Hyundai Construction Equipment Launches 7 New Mini Excavators ▶ A global launching ceremony is held at the company’s Ulsan campus with representatives of overseas subsidiaries and dealers from 15 countries in attendance▶ The mini excavators meet European Stage V emission standards and boast of the lowest noise level among comparable models▶ Through steady market growth, the company’s business is expected to be worth KRW 18 trillion by 2027 … “aiming to maximize its global market share” HD Hyundai Construction Equipment has launched a new lineup of mini excavators, poised to bolster its market presence with enhanced product competitiveness and supply capabilities.The company announced on December 8 that it hosted the “Global Launching Ceremony for 7 New Mini Excavators” at its Ulsan Campus (Promotion Hall). Attended by 200 individuals from 15 countries including expatriate employees, dealers, and representatives of partner companies, the ceremony served as a platform for the global unveiling of the latest product offerings.This event follows the “Global Workshop” held at the HD Hyundai Global R&D Center in Pangyo for four days starting December 4th, where strategies for reinforcing the competitiveness of compact products (small construction equipment) were discussed. The event was organized to showcase the new product lineup and generate innovative ideas for global marketing initiatives.  The event featured △ product unveiling, △ product explanation and demonstration, △ mini talk show, △ and performance concert for global dealers. Consisting of 7 types of vehicles (1.7-ton, 1.9-ton, 3-ton, 3.5-ton, 4-ton, 4.8-ton, and 5.5-ton), HD HYUNDAI CONSTRUCTION EQUIPMENT’s full lineup of new mini excavators was designed to enable the company to respond to diverse customer needs. The slogan “NEW STANDARD” captures the confidence and determination to become the new standard in the excavator market. The new products boast of premium specifications and performance capabilities to comply with the “STAGE V” regulation, the European standard on greenhouse gas emissions. These advancements not only maximize work efficiency but also result in the lowest noise levels compared to competitor models.Considering the diverse customer base using mini excavators, an emergency switch has been incorporated to allow operators to stop the engine instantly in emergency situations; thus significantly enhancing safety measures. Operator comfort has been prioritized through a spacious cabin interior achieved with an ergonomically designed layout.The demand for mini excavators is on a consistent rise each year, thanks to their versatility in various environments such as urban areas, farms, and rural homes. According to Off-Highway Research, a UK-based research agency specializing in the global construction equipment market, the demand for mini excavators is expected to continue its upward trajectory, surpassing the KRW 18 trillion mark by 2027. "We have successfully increased our production capacity of mini excavators by over 40%, from 7,000 to 10,000 vehicles per year. This expansion enables us to address global demand swiftly. Moving forward, we are committed to enhancing our product competitiveness to maintain a technological edge over our rivals in the mini excavator market," President Choi Cheol-gon of HD Hyundai Construction Equipment said in his welcome address.  ■  Caption for Photo 1: President Choi Cheol-gon of HD Hyundai Construction Equipment explains the new products to expatriate employees, dealers, and partner company representatives from 15 countries during the “Global Launching Ceremony for 7 New Mini Excavators” held on December 8. ■  Caption for Photo 2: At the “Global Launching Ceremony for 7 New Mini Excavators” held on December 8 by HD Hyundai Construction Equipment, expatriate employees, dealers, and partner company representatives from 15 countries personally examine the new products.

HD Hyundai Construction Equipment Continues to Win Global Construction and Mining Orders ▶ To provide large equipment to Argentina’s lithium mine excavation site and The Line in the NEOM project▶ Shows that product competitiveness has been globally in mid-to-large construction equipment market South Korea, September 4, 2023 – HD Hyundai Construction Equipment has proved its competitiveness in the mid-to-large construction equipment market by winning orders from global construction and mining sites. HD Hyundai Construction Equipment announced on Sep. 3, that it won deals for Argentina’s lithium mine excavation project and Saudi Arabia’s NEOM project. A total of seventy three equipment including excavators, wheel loaders, and ADTs will be provided to these sites. For the Argentina deal, a total of twenty three products including six 50T excavators, three 300hp wheel loaders, four 150hp motor graders, and ten 41T load weight ADTs will be provided by September.  These products will be used in Salta, Argentina to create mines, process lithium, and discard salt created in the process. Different kinds of construction equipment are needed when building new lithium mines above 4,000m and higher altitudes, and HD Hyundai Construction Equipment ability to provide large equipment volumes along with its global network was what made it win the deal.  Prior to this, HD Hyundai Construction Equipment also successfully delivered fifty machines including twelve 40T excavators and five large bucket (5.6㎥) wheel loaders to The Line in Saudi Arabia’s NEOM project this August.  This was the first in the industry to provide eco-friendly equipment to Saudi Arabia that satisfies EU Stage V emission standards. HD Hyundai Construction Equipment hopes to receive more orders as it has been able to provide equipment equipped with a short distance smart warning system, additional safety features, and driver-centric designs fit for different sites. With its product competitiveness, the company plans to increase profit by expanding target markets and securing key customers that need large sized equipment to excavate raw material/minerals.  Demand is expected to increase for the time being in target markets as demand for new raw materials grow with large construction projects and secondary cell development. HD Hyundai Construction Equipment recorded a 15% increase in growth rate for Q2 compared to the previous year in regions such as Latin America and other resource-producing countries, while reaching a 97% increase in the Middle East. A representative of HD Hyundai XiteSolution, the intermediary holding company of HD Hyundai’s construction equipment business, mentioned, "It is encouraging to hear that we won large orders from Latin America’s mining industry and Saudi Arabia’s large scale construction project, as they both have great growth potential", and added, "Our large sized equipment are strong enough to compete in these markets and to further expand targets, we will continue to provide customized products and better services that will satisfy their needs." ■ Photo Description (without background): HD Hyundai Construction Equipment’s 50T excavator (HX500LT3) to be provided to the lithium mine in Argentina ■ Photo Description (with background): HD Hyundai Construction Equipment’s 40T excavator (HX400A) delivered to Saudi Arabia’s NEOM project

Hyundai Construction Equipment has released a new BI “Comfort Intelligence”, which contains future value ▶ Held a presentation event at “ConExpo 2023”, and launched a new slogan.▶ “We will pioneer the way forward as a leading construction machinery brand by providing more convenient and innovative products,” said CEO Choi Cheol-gon.Hyundai Construction Equipment (CEO Choi Cheol-gon), a subsidiary of HD Hyundai in the construction machinery industry, announced a new brand identity (BI) and slogan that represents the future value and strategic direction of the company.On the 14th (local time), Hyundai Construction Equipment announced that it held an event to introduce its new BI “Comfort Intelligence” at ‘ConExpo 2023, the world’s largest construction machinery exhibition held in Las Vegas, U.S.The new BI “Comfort Intelligence” connotes the strong goal and willpower of the brand to produce technologies and products that also consider the comfort of customer’s lives, beyond providing comfortable machinery and convenient work environment.Hyundai Construction Equipment also revealed its new slogan, ‘Building a comfortable tomorrow’, to actively use the meaning of BI in internal and external communications. The new slogan embodies that Hyundai Construction Equipment will lead the creation of a comfortable, convenient tomorrow for everyone, based on its excellent technological prowess and machinery.    “We will pioneer the future as a leading brand in the construction machinery industry by providing more convenient and innovative products, and will use the new BI as a basis for judgment when we consider the scope of differentiated convenience for customers from the product planning stage,” said CEO Choi Cheol-gon during the announcement event. Hyundai Construction Equipment decided to implement the brand values of “comfort” and “intelligence” more specifically and intensively when developing products and solutions in the future. It also decided to pursue ergonomic design of products such as the interface and seats inside the cabin, in addition to changes in the external design of construction machinery, while also actively developing the smart construction business through use of the equipment-geared total solution “Hyundai Connect”, based on AI and ICT.Hyundai Construction Equipment exhibited various products and solutions at the ConExpo 2023 exhibition, including 25 types of construction machinery in addition to new products such as mini excavators, skid loaders, ADT trucks, smart safety solutions, remote wheel loader control technology up to 2,900km, and eco-friendly 1.8-ton mini electric and 15-ton hydrogen excavators. ■ Caption 1: Hyundai Construction Equipment revealed a new brand identity (BI) and slogan at the ConExpo 2023 held in Las Vegas on the 14th (local time). Hyundai Construction Equipment CEO Choi Cheol-gon (right) and Hyundai Genuine CEO Cho Young-cheul (left) stand in front of the new slogan “Building a comfortable tomorrow”.   ■ Caption (2 to 4): Hyundai Construction Equipment's booth at the 'ConExpo 2023 held in Las Vegas until the 18th. Hyundai Construction Equipment announced a new brand identity (BI) and slogan.

Already a Year Old: The Three Hyundai Construction Equipment Companies Celebrate Their First AnniversaryOn August 19th, the three Hyundai construction equipment companies (Hyundai Genuine, Hyundai Construction Equipment, and Hyundai Doosan Infracore) gathered to celebrate their first anniversary. Reflecting on their first year, the three companies revised their mid- and long-term strategy. We provide you with what brave plans the three devised to become one of the global top 5 companies with this news. A Time Devoted to Design a Growth Strategy to Reach Their Goal of Becoming Global Top 5The three companies celebrated their anniversary with a ceremony held at Hyundai Doosan Infracore Headquarters located in Incheon. The CEOs and executives including Son Dongyeon (Vice CEO of Hyundai Genuine), Choi Cheolgon (CEO of Hyundai Construction Equipment), and Oh Seunghyeon (CEO of Hyundai Doosan Infracore) attended the event. Fifty employees including Yoo Junmo (Head of Hyundai Doosan Infracore Labor Union) and Lim Yeongmo (Department Head of Metal Workers Union at Hyundai Heavy Machinery) also attended to celebrate the anniversary.Representing the three CEOs, Jo Yeongcheol (CEO of Hyundai Genuine) delivered a speech honoring the anniversary. He stated that the increased key interest rates and raw material costs combined with a prolonged depression in the Chinese market “are challenging.” He also highlighted that the first half of 2023 “would be the golden time given to us to reach our goal of becoming one of the global top 5 as planned.”The CEO demanded the executives and employees confront this trying period as if the companies are in an urgent situation. He promised that the company culture will be changed by avoiding unnecessary meetings to enhance work efficiency and streamlining the reporting procedure to facilitate prompt decision-making.Furthermore, to become the top-tier construction equipment company beyond the global top 5, he proclaimed to devise a mid-and long-term growth strategy by improving the product portfolio and reinforcing regional strategies by focusing on regional differences.The celebration ceremony was a place to honor the three companies’ anniversary and a place to design fresh strategies for their growth. A special lecture from Ryu Hansoo (Sangmyeong University Professor in the Department of Historical Contents), who specializes in Russia, provided a great opportunity to review the global market. The lecture discussed what triggered the Russia-Ukraine war and how the world would change after the conflict. Ryu’s lecture helped the participants reflect on a plan to respond to a shift in the companies’ business environment in the region due to the recent crisis.After the event, the three CEOs and heads of the Labor Union in Hyundai Construction Equipment and Hyundai Doosan Infracore planted a persimmon tree together representing a harmonious relationship between the three companies. The members then visited the construction equipment factory and an engine factory in the Incheon plant to inspect the safety of facilities.Celebrating Their First Anniversary TogetherThe companies made a video celebrating the anniversary. Twenty employees from the three companies had an interview reflecting on the path the three companies walked together and addressing the expectation they have of the companies. Each participant expressed their hopes for the harmonious future and growth the three companies will experience and proclaimed their determination of taking their part to reach the companies’ goal of becoming one of the global top 5 construction equipment manufacturers.“If you want to go fast, go alone; if you want to go far, go together.”—a famous African maxim. Hyundai Construction Equipment, Hyundai Genuine, and Hyundai Doosan Infracore understand the maxim more than anyone else, experiencing for the past year the value and power of going together. Through intricate cooperation in every aspect of operation including purchasing, technology, etc., the three companies will become one of the global top 5 construction equipment manufacturers and leap towards a top-tier construction equipment maker.

HCE Completes the Medium/Large-sized Equipment Product Line: The Global Launch of ADT  Hyundai Construction Equipment unveiled its first ADT (Articulated Dump Truck) at Hillhead Exhibition held in the United Kingdom. This latest addition to HCE’s products allowed the company to complete its medium/large-sized product family including excavators and wheel loaders. Learn more about the company’s newest equipment from the Senior manager of the Global PM & Marketing Team, Kim Hyeongseok. Q. It’s a pleasure to meet you. Tell us about yourself.Good to meet you as well. I am Kim Hyeongseok from the HQ’s Global PM & Marketing Team, and in the team, I am in charge of everything related to the loaders. Q. What would be the primary features of the ADT? Our ADT comes in two different models: the HA30 and HA45. The numbers refer to the loading capacity of each model, the HA30’s being 30 tons and the HA45’s being 45 tons. If I were to put their primary features in four words, it would be “Heavier load, stable off-road”. HCE’s ADT can carry much more materials and can stably go through unpaved and uneven surfaces. This sounds like an obvious job of which any construction machine is capable, but it is not as easy as it sounds. We designed our ADT to have a special body structure to endure more and heavier materials to be delivered. We tilted the floor of the dump body by about 7 degrees so that the load could stack up from the deepest part of the compartment as well as the weight of the loaded materials could equally be distributed to the wheels to increase stability.If you have to handle lighter materials, our ADT comes with an option to increase the height of the gate and the dump body by 200 to 250 mm to accommodate as many materials as the allowable load. The excellent driving performance that is powerful enough to march through unpaved or bumpy surfaces is another advantage that Hyundai Construction Equipment’s ADT holds. To make the ADTs drive like no other, we applied a unique driving system developed by our company. While our competitors adopt three axles each turning two wheels, HCE’s ADT is applied with the Tandem Bogie design, in which one rear axle rotates four wheels. The motor system on the front, which resembles that of an SUV, is equipped with an independent suspension that directly connects the transmission and the wheels without a driving axle. Such a system allows driving the equipment to be incredibly comfortable in rugged, unpaved places where it is used the most, such as a quarry or a mine.We also applied an articulated frame steering to the equipment. The rotation ring of the hinge placed at the heading of the machine reduces the inertia while making a turn and makes the wheels bear an equal weight, which prevents the machinery from receiving too much centrifugal force hence turning with a larger steering radius.Furthermore, we equipped the ADTs with enough safety features such as a rear camera and a speed tracking system for the machines would often work in dangerous environments. The user-convenience features such as LED lights, an auto greaser, and HEFA filters are also applied. Q. What makes HCE’s ADTs different from the competitors’ ADTs?As I mentioned earlier, the dump body design, the unique driving system, and the placement of the hinge are the things that make our ADTs distinctive from others.Q. Given the features applied to the machines, where would you recommend people use Hyundai Construction Equipment’s ADTs?I guarantee that any worksite with rough or unpaved surfaces, such as a quarry or a mine, would be a perfect place to use our ADTs. Q. Is there any particular goal you have set launching the new ADTs?The company sold 7,400 30-ton and 45-ton models in the global market in 2021, while CAT and Volvo, two among our ten major competitors, take up 70% of the market share (M/S). Frankly speaking, the global construction equipment market is a harsh place for late-comers like us. However, we are striving to promote our sales and reach 3% in market share by 2026 by showing the global customers our unique equipment and technology, as well as utilizing our global network. Q. I hear that the new ADTs will be sold in Europe, the US, Australia, Indonesia, and Russia. How are the customers there responding to the new products? We have released the new ADTs on June 21st, so not much is happening yet. We will have to see for the next few months to gather meaningful data. But our hopes are high as the company’s overseas branches and the dealers working in those countries report that the market has a high expectation for our ADTs. We wish these positive reports would come true. Q. Any final comment for our customers?Our company aims to provide the best ADT that could perform with excellent driving performance and stability. Based on its performance and the safety/convenience features, Hyundai Construction Equipment’s ADT will make you productive at any quarry/mine in the world. Although it is the newest member of HCE’s product family, the new Articulated Dump Trucks are capable of so much. Being the perfect solution to rough worksites, the durable ADT from Hyundai Construction Equipment will prove its preeminence in the global market.

Hyundai Construction Equipment Meets the World – Global Exhibitions HCE participated in 2022  A global exhibition is an opportunity for a company to present the world its capabilities. Hyundai Construction Equipment also plans to join in numerous global exhibitions this year to show the international market its equipment and technology. Here are some lists of exhibitions HCE has joined so far in 2022. ISRI 2022: The World's Largest Recycling Industry Exhibition Hyundai Construction Equipment participated in ISRI (Institute of Scrap Recycling Industries) 2022 held in Las Vegas, Nevada from March 21st to March 24th. The ISRI Convention and Exhibition is the largest one in the scrap and recycling industry, and it was HCE's first time joining the show. Hyundai Construction Equipment's material handler HW250MH and wheel loader HL960AHDXT attracted many visitors during the exhibition. HW250MH has a strong cabin frame and a grapple suitable for performing tasks in a scrap yard or working through an underwater terminal. HL960AHD can be equipped with various safety features on its front and rear sides, helping workers securely move the materials. Hyundai Construction Equipment also took part in World of Asphalt held in Nashville, Tennessee. Around 8,000 people working in the asphalt, road maintenance, and road safety business visited the exhibition, where HCE's wheel loader HL980A and excavator HX220AL, which have a high demand in the related tasks, drew many visitors' attention.HCE participated in the National Heavy Equipment Show (NHES) held in Ontario, Canada as well, presenting the company's outstanding products such as its excavators HX235ALCR and HX480AL, and its wheel loaders HL995A TM and HL980A. EXCON 2021: The Largest Construction Equipment Event in India EXCON 2021 is another major exhibition that Hyundai Construction Equipment has joined. Being the most visited construction equipment event in India, EXCON 2021 took place for five days, from May 17th to May 21st. Over a thousand companies from Korea, the United States, Great Britain, Germany, and Italy participated in the show, proving that EXCON is the largest construction equipment and technology convention in South Asia. For EXCON 2021, HCE put forth three themes: sustainable future, safer machines, and artificial intelligence technologies. Focusing on these main themes, the company proposed its vision in front of a global audience, showcasing new products, innovations, and digitalization of its machines. Thanks to the Indian government's ambition to reinforce the country's infrastructure, the Indian construction equipment market is experiencing unprecedented growth. According to a report from the Indian Construction Equipment Manufacturers Association (ICEMA), the industry had remarkable growth, a 47% increase in its size compared to last year, during FY21-22 Q2. Presuming that the market shows a similar pace of growth, it is expected to become a 250-billion-dollar market, making it the second-largest market in the world. Hyundai Construction Equipment plans to use EXCON 2021 as a stepping stone and aims to extend its influence in the soaring market full of possibilities.  Hyundai Construction Equipment left a great impression participating in these events, showing the world the potential and capability of the company. HCE will relentlessly strive to let the world know the company's competitiveness and expertise through exhibitions and conventions to come.

For A Safer Work Environment - Adopting Work Safety Qualification IncentivesHyundai Construction Equipment has adopted 'Work Safety Qualification Incentives", a new policy cultivating safety experts and building a safety culture in the company. This new incentive policy will give benefits to employees and executives who acquire safety-related qualifications, encouraging safety education and training as well as becoming the foundation for making the company a safer place. Let us learn more about the policy. The Work Safety Qualification Incentives PolicyComes with Various Supports Nine qualifications from three categories are eligible for the incentives: Professional Engineer (in Machine Safety, Construction Safety, Electric Safety, Chemical Safety), Engineer in Industrial Safety / Industrial Engineer in Industrial Safety, Master Craftsman in Hazardous Material / Industrial Engineer in Hazardous Material, Craftsman in Hazardous Material. With the new policy, employees applying for qualification examinations or acquiring the qualifications written above can get various supports from the company. First, the company will reimburse employees for half of the amount spent on books preparing for the qualification exam, as well as half of the exam application fee. Yes, you won't have to worry too much about the money. Secondly, employees who are willing to prepare for the exam will also be provided with the time for studying. This is not much, but it is good news for those studying for the qualification exam after work. Finally, monetary rewards from 500,000 KRW to 1,500,000 KRW will be given to the employees who pass the qualification exam. This will surely encourage you to study.  Until we all become safety experts Hyundai Construction Equipment has been striving to build a safety culture in the company. Building on the ISO 45001, the international standard for occupational health and safety, the company has been conducting numerous activities that promote a safety culture based on principles and responsibility as well as a health and safety system focusing on participation and prevention.The executive board is also striving to create a safer environment by conducting a company-wide safety and work hazard prevention conference and by performing exhaustive safety maintenance throughout the worksites. Also, the company is putting efforts to help employees voluntarily adopt a safety culture by carrying out a risk evaluation program and TBMs (Tool Box Meetings) where all employees are invited to participate. With this incentive policy added to these efforts, we hope to reinforce safety in the company."Work Safety Qualification Incentive Policy" is more than mere rewards given to employees who educate themselves. Hyundai Construction Equipment is not only willing to cultivate safety experts, but also willing to have every employee and executive become safety experts. We expect every member in the company to become so, making Hyundai Construction Equipment the safest company in Korea.

Drawing up a blueprint of smart construction site with SMART INNOVATIONCONEX KOREA 2021, the largest construction equipment exhibition in Korea, wrapped up on November 13th. SMART INNOVATION, which took place on a second day, received a lot of positive responses from visitors. It presented the various startups’ business items that were expected to lead the smart construction solution along with HCE. Here is a vivid review of SMART INNOVATION, where we could make a blueprint for the smart construction site.Startup’s presentation of Business items-A glimpse into the future of smart construction technology SMART INNOVATION was a place to present various business items from 6-startup companies. It was a time to get a glimpse into the future smart construction technology using advanced technology.  On this day, 6-startup companies attended; MAOT, Timwork, Musma, SIZL, Bistelligence and Angel Swing. MAOT proposed ‘Digital safety System’ that is expected to drastically reduce industrial accidents under the theme of ‘HYUNDAI CONNECT X MAOT HSE, a smart collaboration for productivity and safety’. Timwork introduced ‘smart construction collaboration platform and real-time on-site management system based on design documents’, Musma announced Integrated Management Solution based on Heavy-duty Equipment Data at Construction Sites’ and talked about the remarkable changes when this technology is used in the construction site.Seazel drew attention with its proposal for ‘Development and Support Solution for predictive maintenance system Module of Heavy Equipment’, which is expected to reduce costs with improved productivity. Bistelligence proposed a data-based work productivity improvement solution under the theme of ‘strengthening the efficiency of construction equipment operation through collecting and analyzing environment information in worksites’, while Angel Swing introduced a ‘drone data solution’ that helps smart construction management by virtualizing the worksites through drones. SMART INNOVATION raised expectations for the future smart construction in collaboration with HCE and startups. We had an interview with Choi Gye-hyun, a senior of HCE who planned SMART INNOVATION. Interview with Choi Gye-hyun- a planner of SMART INNOVATION Q1. What is the intention and purpose of planning SMART INNOVATION?HCE is trying to create a new cooperative system with companies and institutions that can lead innovation not only internally but also externally through Open Innovation program. With this intention, through Shinhan Open Innovation, a cooperation program hosted by Shinhan Financial Group, HCE is trying to find collaborative tasks with a number of startups with multiple starting points, and is pushing for innovative tasks like smart construction solutions. SMART INNOVATION is planned to announce proposals from startups that want to cooperate with HCE, especially to show how to make links between smart construction solutions and make a platform. Q2. What do you plan to make with these 6 partners in the future?The six startup companies announced by SMART INNOVATION have developed with individual ideas in deriving cooperative tasks with different backgrounds. Angel Swing has already been a cooperative operation of ODM tasks of Hi SITE technology. But there is a long way to go in implementing specific tasks with the other 5 companies. The future plan is to link and develop solutions from each startup by planning ‘Hyundai Connect Platform’ that accelerates the operation of smart construction. This requires a lot of discussion, such as business models and development schedules, and the schedule may vary for each company. As a short-term plan, there will be a screening process to select the best cooperative startup company in December, which is the final stage of the Shinhan Open Innovation Program. Each startup plans to refine its technology and specify cooperative items based on the theme by then. Q3. Lastly, please tell us how you feel about successfully finishing the SMART INNOVATION.The biggest achievement while preparing for SMART INNOVATION was that we were able to reveal the blueprint for smart construction solutions and platforms more clearly. As it was an event to present to officials, I was worried if the message was delivered clearly. And it was an opportunity to come up with ideas together and draw more clearly about what changes we will show in the future. After the event, we had a meeting with startups that participated in the presentation and VIPs related to smart construction. Even though it was a brief meeting, I felt they have a passion to create the future of smart construction in Korea. Through this opportunity, we want to continue to show innovation in the company and industry. Thank you for supporting these events. In the future, HCE plans to develop smart construction technology and innovate the construction industry through collaboration with startups participating in SMART INNOVATION.

Hyundai Construction Equipment plans to invest USD 170 Million the Ulsan Factory to expand production capacity by 50%▶ Company’s largest investment since its launch as a newly established corporation, capable of producing 15,000 units of construction equipment.▶ HCE anticipates profit improvement effects, such as reduction of assembly hours and logistics costs. ▶ HCE decided investment according to booming global construction equipment market and plan to develop a construction equipment division as core business within the HHI group. Hyundai Construction Equipment (HCE) will invest approximately USD 170 Million in its Ulsan factory, its major production base, in a drive to strengthen its competitiveness in light of the boom in the global construction equipment. HCE publicly announced its plan to invest USD 170 Million over a period of four years, with the aim of expanding the production capacity and simplifying the manufacturing processes of its Ulsan factory, on Tuesday, December 14. This is HCE’s largest investment since its split from Hyundai Heavy Industries and its launch as a newly established corporation in 2017. HCE will carry out the investment with the focus on restructuring the production lines, in order to maximize their efficiency and expand the factory’s production capacity of excavators, wheel loaders, and other types of construction equipment.  HCE is planning to merge the construction equipment production and assembly functions dispersed in Factories 1 and 2 into one in Factory 2. The simplification of the flow of the factory’s manufacturing processes is expected to generate profit improvement effects by enabling a reduction of work hours and logistics costs, as well as maximizing efficiency. Furthermore, HCE plans to reflect ESG factors, such as the use of eco-friendly sub-materials when conducting interior and exterior finish work, in the factory and to reduce risk factors between work processes by configuring the production lines in a way that further improves workers’ safety. HCE also expects to increase its market share in each region by effectively responding to the current upward trend of the global construction equipment market by expanding its production capacity with this investment.In fact, according to Off-Highway Research, a UK research institute specializing in global construction equipment, the sales volume of global construction equipment is forecast to reach 1.08 million units per year by 2025, showing a continuous economic boom. Notably, as the US recently made official its launch of the ‘Build Back Better World (B3W)’ initiative for developing countries, HCE is looking forward to expanding the new market.HCE confirmed its decision after six months of close examinations related with the favorable conditions of the global construction equipment market and its plan to develop a construction equipment business within the group. Last May, Hyundai Heavy Industries Group appointed Mr. Choi Cheol-gon, a production expert in the area of construction equipment, as the head of the Global Production Innovation Center, and entrusted him with the task of reviewing the measures for maximizing the production efficiency of the Ulsan factory. Last month, Mr. Choi, currently the CEO of HCE, declared the urgent necessity of improving the efficiency of Ulsan factory and set out to execute the plan to create synergy by competing in good faith with Hyundai Doosan Infracore.CEO Choi Cheol-gon said, “Strengthening the competitiveness of the Ulsan factory is the first challenge that needs to be addressed to reach the global top 5, the goal of the construction equipment division of the Hyundai Heavy Industries group. With this investment, we will further raise our brand competitiveness by producing and delivering construction equipment with increased efficiency.”Meanwhile, last November, HCE completed the construction of a technology innovation center for a total investment of USD 65 Million. The new center, which consists of sixteen laboratories employing around 100 researchers, will execute research & development projects focused on eco-friendly technologies, high efficiency & noise reduction technologies, and a virtual verification system, while comprehensively performing quality research and verification ranging from parts to completed equipment. HCE will not spare any investments to make sure the company takes a leap to become a global top tier company with efforts like completing the quality assurance center for verifying the reliability of parts (June 2021), and remodeling the global training center for developing excellent human resources (June 2021).   ???? Panomic view of Hyundai Construction Equipment’s Ulsan Factory