South Korea’s HD Hyundai Construction Equipment Co. (HD HCE) has completely revamped its Ulsan plant into a smart factory.

The company said that it held a completion ceremony for the smart factory at its Ulsan campus in the country’s southeast on Tuesday, marking its transformation into a global manufacturing hub. It expects a roughly 20 percent improvement in labor productivity and a 35 percent reduction in production lead time once the smart factory is operational. The company also expects annual production capacity for its excavators and wheel loaders - ranging from mid- to large-sized models - to increase by 56 percent from 9,600 units to 15,000 units.

HD HCE has been executing a “modernization project” to upgrade facilities and expand capacity since 2023, into which it has invested around 200 billion won ($143.5 million). It integrated Plants 1 and 2 within the existing 234,710-square-meter site while upgrading equipment and operational systems.

Alongside the expansion and reconfiguration of production lines, the company also built new facilities including a quality assurance center, inbound logistics building, and office building.

To enhance consistency in productivity and quality, it applied welding robots and vision sensors to the parts production line while equipping the assembly line for construction equipment with automated guided vehicles (AGVs) as well as an artificial intelligence (AI)-based quality inspection system to significantly boost automation throughout the process.

“The new plant, with its smart and safe production system, will establish itself as the world’s best manufacturing base, equipped with cutting-edge technology and environmental standards,” HD Hyundai Co. Chairman Kwon Oh-gap said.

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