On August 18, 2009 Doosan Infracore reported that DIEU, its subsidiary in Europe, signed a contract for taking over Moxy Engineering AS, a Norwegian business specializing in the production of ADTs, for €55 million (= 85.3 billion won) in connection with its bid to make a foray into the large-sized mining equipment market amid the expansion of the world heavy construction equipment market.
Moxy, located in Molde along Norway’s west coast, owns the source technology for 23 ~ 46 ton-class ADTs, and has networks for 61 dealers in Europe and North America, in addition to local sales corporations and R&D centers in the U.S. and the U.K.
ADT, Moxy’s main product, has independent front and rear frames, so bodies are able to bend to the right and the left. Driving performance is very excellent at a narrow place, because its turning radius is small. ADTs can also carry a large amount of load. Thus, they are ideal ones in the work for development of large-sized mines and construction in difficult terrains.
At present, the world ADT market has grown by an average of 18 percent over the past 3 years thanks to brisker development of mines following the jump in raw material prices. In 2007, the world market for ADTs stood at 3.4 trillion won.
Doosan Infracore plans to increase the annual sales of Moxy by 5-fold to €250 million (= 387.5 billion won) by 2012, fully utilizing its network of 300-plus dealers in China, Europe and North America.
Thus, Doosan Infracore thinks that it can establish a brand image as a business specializing in construction equipment, by taking over Moxy, whose brand value has been recognized in the large-sized equipment market, along with its exiting production facilities for mid/large-sized excavators, wheel-loaders and small construction equipment of Bobcat. It also expects that the joint operation of the network of existing and newly acquired dealers and the expanded product lineup will enable it to expand to large-sized excavators and wheel-loaders and carry out package sales toward large-sized equipment purchasers, thus, laying the basis for accomplishment of its vision of “Global Top 3 in Construction Machinery by 2012.”
Doosan Infracore Senior Managing Director Kim Dong-chul (Head of the Construction Machinery BG) said, “Although Moxy’s sales volume is not so large (€54 million = 83.3 billion won in 2007), it owns the source technology for ADTs. Thus it will play a pivotal role in the Infrastructure Support Business, if it smoothly linked with Doosan Infracore’s ongoing business. Utilizing the takeover as a momentum, we will push ahead with a positive foray into the mining equipment market, in addition to heavy construction equipment business.”
In March 2007, Doosan Infracore took over Yantai Yuhua Machinery Ltd., a wheel-loader manufacturer in China, through a positive M&A action in connection with its bid to grow as Global Top 3 in Construction Machinery by 2012. In November 2007, the Company took over Bobcat, Utility Equipment and Attachments businesses from Ingersoll Rand which boasts the world’s No.1 competitiveness in small-sized construction machinery.