Work Begins on new Doosan factory
June 18th 2008

Doosan Infracore has held a groundbreaking ceremony in Suzhou, China, at the start of the construction of a production complex dedicated to forklifts and compact excavators. The company will take aim at the local market while bolstering global competitiveness.

The new facilities will be run by Doosan Infracore China Co. (a local subsidiary) and Doosan Infracore (China) Investment Co. (a holding company). The increased capacity will boost Doosan Infracore's position in China's forklift and excavator markets, and output will include export models, raising the company's global competitiveness for these product lines.

Doosan Infracore will spend US$192 million to build the new complex, which will be located on a 240,000 square metre site. Initial production, scheduled to begin in the first half of 2009, will total some 30,000 units per year, and annual output will be expanded to 75,000 units by 2013. Doosan Infracore already operates a plant for mid-sized and large excavators at Yantai, and holds the top share of those product segments in China.

Management is now looking to achieve the same level of success in China with forklifts and compact excavators. The drive to boost global sales will be strengthened as well. Importantly, both complexes (at Yantai and Suzhou) will have optimal production systems and operating at two locations will foster greater specialisation.

Several factors have prompted the decision to set up a new operation at Suzhou. The Chinese forklift and compact excavator markets are growing fast. Moreover, Doosan Infracore will be better positioned to penetrate the South China region, and logistics costs will be lowered, raising competitiveness.

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