HD Hyundai Construction Equipment announced the signing of a supply contract for 100 large excavators with Al Rawaf Consulting Company, a leading construction firm in Saudi Arabia.
Under this agreement, HD Hyundai Construction Equipment will progressively deliver a total of 100 construction units – 70 22-ton excavators and 30 50-ton excavators. These machines will play a crucial role in the construction of a 400km-long underwater pipeline connecting Riyadh with Dammam, situated on the eastern side of Saudi Arabia.
As of this year, Hyundai Construction Equipment has secured a series of substantial contracts in the Saudi Arabian construction equipment market. Particularly noteworthy is the contract signed in August, where the company committed to supplying 50 large excavators and wheel loaders for the NEOM City project. By the end of this year, the company expects to have successfully sold a total of 800 pieces of equipment in Saudi Arabia alone.
The company’s success in securing a series of orders this year can be attributed to the development of products tailored to the specific needs of local customers, thereby establishing differentiable product competitiveness. Additionally, the ability of the company to meet short delivery deadlines, facilitated by its global supply chain, has played a crucial role in its accomplishments.
The company has steadily expanded its services for local customers since entering the Saudi Arabian market in 1991, operating through six branch offices. The strong brand trust cultivated over the years is evident in the premium prices commanded by the company’s used equipment, underscoring the high regard for it in the market.
The sustained high growth rate in the demand for construction equipment in Saudi Arabia is expected to persist in the coming years. A report from the Korea Research Center for Overseas Construction forecasts that Saudi Arabia’s construction market will experience a 5% annual growth rate until 2027. Notably, the construction of NEOM – set to be completed in 2030 – saw the deployment of over 6,000 construction equipment units in 2022 alone. Such substantial investment is a clear indicator that Saudi Arabia will likely continue to make significant orders in the foreseeable future.
