Doosan is delighted to announce the formation of a new affiliate company, Doosan Industrial Vehicle Co., Ltd.
The new business will oversee all Doosan’s global forklift activities and focus on pushing Doosan onto the next level, as it continues to make great strides in the materials handling market. Doosan Corporation will take a majority stake in the new company, with Standard Chartered Private Equity chosen as the preferred financial investor.
The existing forklift management teams, dealership and sales networks currently structured within Doosan Infracore, will be absorbed by the new company from 1st of July, 2011.
The move effectively separates the forklift business from the construction, marine engine and machine tools operations and comes as the company looks to focus closely on recent successes in forklifts, including an increased marketshare, a growing distributor network and the expansion of the product range.
Tim Waples, Doosan’s UK director and general manager, welcomed the decision to give the forklift business greater prominence. Said Tim: “We are maturing as a forklift business, particularly in the UK. Our recent investments, in our dealer network, parts centre, IT systems and dealer support facilities are all part of a wider commitment to our growing customer base. As a serious player in this market, our focus has become even stronger and our UK operation should take great pride in their contribution to this development.”
Removing some of DI’s non-forklift related cost burdens and allowing the business greater independence is also expected to have a beneficial effect on the company’s bottom line, with profits ploughed directly back into product research and development.
Executive managing director of the new company, Kun H Lee, said the move would also allow the business to react quickly to market requirements.
Said Kun H: “As our business has matured, we believe that the challenges we have faced have also changed. And whilst we feel our approach is one of the most flexible and responsive around, we believe that by setting up a company focussed solely on materials handling, we will be able to respond even quicker.”
With the new ownership structure, Doosan expects to provide more targeted investment into the new company, as well as increase efficiency and develop a stronger sense of purpose.
“We have a very successful business model that has made great gains in recent years,” says Kun H Lee. “Even in this tough economic environment we expect to surpass our production target. Our dealer network and sales staff are second to none and we are very proud of the achievements we’ve made so far. This move is a testament to their hard work in growing the operation from a relatively minor business group within the Doosan Group to a global success.”
The new Doosan Industrial Vehicle Co., Ltd. will turnover approximately US$ 600 million in sales and will concentrate on developing forklift and warehouse equipment products which not only offer great value and excellent productivity, but are also simple to operate and maintain.
Over 100 Doosan models are available from 1.3 to 5.0 tonnes, electric models and 1.5 to 16.0 tonnes for IC models. For further information see www.doosanforklifts.co.uk