Daedong signed a KRW 360 billion tractor OEM contract with Doosan Bobcat’s US subsidiary
“Cumulative orders at Daedong Group hits KRW 1.8 trillion in 2024”
Daedong signed a KRW 360 billion tractor OEM contract with Doosan Bobcat’s US subsidiary
- Daedong formed a partnership with Doosan Bobcat in 2018, and will supply 20~70 horsepower tractors to Doosan Bobcat for four years starting in 2025
- Daedong has been recognized for its diverse tractor lineup, vertically integrated parts performance, and global production competitiveness
- Daedong Group expects synergies such as stronger competitiveness in purchasing, securing additional global OEM customers, and expanding investments in its new businesses
Daedong (co-CEOs Kim Jun-Sik and Won Yu-Hyun), a leader and pioneer in future agriculture, announced on December 9 that it has signed an OEM supply contract for tractors with Doosan Bobcat North America Inc. The contract is specifically for 20~70 horsepower compact tractors and powertrains, and is worth KRW 361.2 billion. This amounts to approximately 25.2% of Daedong's consolidated sales in 2023. The contract period is for four years, from 2025 to 2028.
Daedong has been maintaining a mutually beneficial partnership with Doosan Bobcat, starting with a joint tractor development contract in 2018, followed by a KRW 303.6 billion OEM supply contract for 20~60 horsepower tractors and powertrains in 2019, and a KRW 70 billion multi-cylinder diesel engine supply contract in 2021. Through the 2019 supply contract, which expires this year, Daedong supplied roughly KRW 300 billion worth of tractors over five years.
Daedong sees its competitiveness in tractors and core parts, built up over 77 years in the agricultural machinery business, as the driving force behind its latest contract with Doosan Bobcat. The company possesses ▲ a diverse product lineup of Tier 1 tractors in North America, ▲ competitiveness in engines and transmissions, which are core tractor parts secured through seamless vertical integration, and▲ improved manufacturing quality and global production capacity thanks to its smart factories.
Combining the KRW 360 billion tractor OEM contract with Doosan Bobcat and the KRW 1.42 trillion contract for supplying vehicle electrification parts to Hyundai Motor and Hyundai Transys, which Daedong Gear won this year, Daedong Group has secured orders of KRW 1.8 trillion (cumulative) in 2024 alone. The Group expects this year's order to have various effects on the company’s existing and future businesses.
Specifically, it anticipates ▲ becoming much more competitive in purchasing raw and subsidiary materials due to the increased tractor production, ▲ securing additional global OEM customers by proving production capacity through long-term supply, ▲ expanding the investment capacity for new businesses at Daedong Gear and Daedong Metal, which supply tractor transmission and engine parts, and ▲ creating synergy effects in terms of electrification technology needed for the Group's robot and mobility businesses.