HD Construction Equipment has secured an order for 45 Develon excavators for a major railway expansion project in Hong Kong, the company said Wednesday.
The order comprises seven 53-ton excavators and 38 midsize and large models weighing between 14 and 36 tons. The machines will be deployed for MTR Corp.’s Tung Chung Line extension, which involves adding about 1.2 kilometers of track and building new station facilities.
The project is being carried out on reclaimed coastal land with relatively weak ground conditions, creating demand for specialized machinery such as long-reach excavators. HD Construction Equipment said the project could generate additional orders for ultra-large excavators in the 80-ton and 100-ton classes.
The company said it beat lower-priced Chinese rivals to win the contract, supported by the fuel efficiency of its equipment and its after-sales service. The deal also represents a shift from its previous business in Hong Kong, which largely involved smaller orders for compact and midsize machinery.
Including the latest deal, HD Construction Equipment has sold 75 units in Hong Kong this year, its highest annual volume there in five years. The company aims to lift annual sales in the market above 100 units by 2029 while broadening its product lineup.
Hong Kong has recently allocated about $90 billion Hong Kong dollars ($11.5 billion) to public infrastructure projects, including transportation upgrades and new-town development, according to government data cited by the company. Annual spending is expected to rise to an average of HK$120 billion as major projects advance, including the Northern Metropolis development linking Hong Kong more closely with mainland China.
“We have been rebuilding our presence in a market where we once held a strong position, making an order of this scale particularly meaningful,” an HD Construction Equipment official said.
“Building on this deal, we will expand our local sales network and further strengthen the Develon brand.”
yejinlim@heraldcorp.com
