[Alpha Biz= Kim Jisun] HD Hyundai Construction Equipment announced on April 3 that it will cease production at its Jiangsu subsidiary in China within the month. Instead, the company will outsource manufacturing to its affiliate, HD Hyundai Infracore’s Yantai plant in China.
Despite the production halt, sales and export activities in China will continue as usual, and the company does not expect any impact on its consolidated financial statements. However, due to restructuring costs, the company's 2024 operating profit forecast has been revised downward from KRW 194.6 billion to KRW 160.5 billion.
HD Hyundai Construction Equipment clarified that it has no plans to sell or withdraw from the Jiangsu plant but is currently evaluating future utilization plans.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
