Press Release

Doosan Group Vice Chairman Geewon Park visited the Chinese subsidiary of Doosan Infracore (DICC), which has posted an impressive performance so far this year, and asked the company to firmly consolidate its business despite the current market volatility. On May 25, Vice Chairman Park, together with Doosan Infracore President and CEO Dongyoun Sohn and other DI executives, visited DICC in Yantai, Shandong Province, China, where he inspected the company’s business operations and future tasks. Regarding the Chinese market’s projected impressive growth,* Mr. Park said, “I must ask you to secure the necessary production capability and mechanical parts in order to maximize sales during the robust season.” * This year will see the Chinese excavator market reach 150,000 to 170,000 units, up 15~30% from 2017. Mr. Park cited the reasons for DICC’s good performance and greater market share last year and this year as its appropriate response to the market, its construction of a risk management system, its improved profitability thanks to the greater sales of medium and large-size machines, its flexible response to production, and the improvement of its quality indices. DICC reported Q1 sales of KRW 425.1 billion, up 92.9% compared with the previous year, with sales of excavators rising 57% year-on-year to 5,016 units. The average sale price of excavators has already increased by 16% since last year. This year DICC is projected to sell somewhere in the region of 13,000 to 15,000 excavators. Thanks to this outstanding performance, DICC reported the third-highest share* in the Chinese excavator market in February. * DICC’s market share has risen consistently, from 6.7% in 2015 to 7.4% in 2016, 8.3% in 2017, and 9.0% in Q1 2018. In addition, Mr. Park asked DICC to resolve to boost its fundamental competitiveness and stabilize its profitability structure on the back of its good performance, adding, “In view of this continuous expansion of your sales revenues, I ask you to firmly consolidate the business despite the market volatility.” In particular, he emphasized that efforts should be made to increase the sale of parts and services based on the many Doosan products sold in a bid to further expand the aftermarket business.” On May 25, Doosan Group Vice Chairman Geewon Park (middle) visited DI’s Chinese subsidiary (DICC) in Yantai, Shandong Province, China, undertaking an observation tour of the workplace and inspecting the business.