CNH SIGNS 10 YEAR DEAL WITH HYUNDAI FOR MINI-EXCAVATORS

Hyundai Heavy Industries and CNH Industrial signed a deal that will enable CNH to manufacture mini excavators in its facilities using the intellectual property of Hyundai. The agreement will result in the next generation of Case and New Holland minis. The agreement will run for 10 years beginning in 2017, according to Yonhap News on Sunday.

The mini-excavator product offering will include 14 models ranging from 1 to 6 tons and will be marketing globally except in South Korea. CNH will be able to produce models of up to 5 tons at its plants and source OEM models above 5 tons.

“This relationship brings together the know-how and expertise of two leading global construction equipment manufacturers, allowing us to take advantage of synergies in terms of technology selection and adaptation, component sourcing, and research and development costs,” said Rich Tobin, CNH CEO. “Our ability to manufacture and source from our geographically complementary industrial base will allow for scale advantages in product costs to be realized, while ensuring that product lead times and logistics costs are minimized for our dealer network.”

Hyundai did not disclose the contract value, but it said the deal with CNH could double its annual compact excavator sales volume to 9,000 units. Hyundai said the partnership recognizes its technological competitiveness in the global market and secures it a foothold to expand its business in small construction equipment.

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