[Photo provided by Doosan Infracore Co.]
South Korea’s Doosan Infracore Co. expects best excavator sales in China despite the pandemic backdrop as it benefits from Beijing’s infrastructure stimuli to combat economic slowdown.
Last month, Doosan Infracore sold 1,551 excavators in China, up a whopping 60 percent from the same month a year ago, according to the China Construction Machinery Association data on Wednesday. Its cumulative sales of excavators in the country so far this year until September totaled at 14,348 units, up 21 percent from the same period last year.
Industry experts projected the company’s excavator sales to stay strong in China throughout the year and expected best year in China that generates about 30 percent of its total sales.
The Chinese excavator market has been rapidly expanding since March as Beijing has launched massive infrastructure projects to restore the economy from virus woes. According to a report by Daishin Securities, excavator sales in China that reached only 6,909 units in February jumped to 43,371 units in April and 29,521 units in May. Excavator sales this year through September topped 200,000 units, already matching the sales made in the entire year of 2019.
The company’s brisk performance in China bodes well for its parent Doosan Group, which has put the construction equipment maker’s 36 percent stake up for sale to keep its debt-ridden unit Doosan Heavy Industries & Construction Co. afloat.
Kospi-listed Doosan Infracore shares closed Thursday at 8,540 won ($7.45), down 1.6 percent from the previous session.
By Song Gwang-sup and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]