South Korea’s heavy equipment maker Doosan Infracore Co. received orders for 32 units of 22-ton excavators to two infrastructure construction companies based in Jilin Province in China, raising hope for recovery in the infrastructure demand in the world’s second largest economy.

The company announced Monday that it won the contract amid recovery of the construction market in China after the rate of the coronavirus infection has slowed significantly in recent weeks. The Chinese firms will use the excavators in a massive infrastructure project in Changchun city to build subways, highways and bridges.

“Demand from the Chinese market is returning to normal following the slowdown in the last two months,” an official from Doosan Infracore said, adding that the industry experts predict the market in China would reach its peak from this month to May. The Chinese firms hinted that they would additionally buy 10 mid-sized excavators, Doosan Infracore said.

According to the China Construction Machinery Association, about 14,000 units of construction equipment sold in January and February, just about half of 27,000 units sold during the same period a year ago. But the cumulative sales bounced back to exceed 40,000 units in March. Doosan Infracore saw its excavator sales fall 31 percent on year to 370 units in January, but last month, shipments shot up to almost 93 percent of the sales of 3,439 units in March 2019.

The Chinese manufacturing sector showing signs of post-virus recovery is also boding well for Doosan Infracore. The National Bureau of Statistics China announced on March 31 that China’s manufacturing purchasing managers index (PMI) reached 52 in March, surging from the lowest record of 35.7 in February. The reading above 50 indicates an expansion of the manufacturing sector.

On Tuesday, shares of Doosan Infacore rose 3.85 percent to end at 4,450 won ($3.65).

By Choi Geun-do and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]