![[Photo provided by Doosan Infracore Co.]](https://scceu.org/wp-content/uploads/2020/05/Doosan-Infracore-suspends-local-factory-operation-for-2-wks-due.jpg)
[Photo provided by Doosan Infracore Co.]
Doosan Infracore Co., the heavy equipment maker under South Korea’s conglomerate Doosan Group, will temporarily suspend production at its factories in Gunsan and Incheon, Korea to adjust inventories amid dwindling exports due to the pandemic-driven economic downturn.
The Gunsan factory that produces excavators and wheel loaders for overseas markets will be shuttered from May 26 to June 5, and the Incheon factory from June 3 to 5 including June 4 to celebrate the anniversary of its foundation, the company announced on Monday in a regulatory filing.
Doosan Infracore shares on Tuesday fell 0.91 percent to 5,450 won ($4.40) in Seoul at 10:17 a.m.
“We have decided to adjust output to maintain inventory at appropriate levels, and we have enough inventories to cover current orders,” said a company official.
The company is grappling with plunging orders from overseas markets where factory and construction sites have been nearly at a standstill as part of efforts by various countries to slow the spread of COVID-19.
One positive news is that machinery demand from China where the coronavirus outbreak was contained earlier than other countries has recovered fast. Doosan Infracore sold 7,242 units of excavators up to April this year in China, similar to last year’s record of 7,545 units. During the period, a total of 104,210 units were sold in China, up from 95,626 units a year earlier.
Earlier, another local heavy equipment maker Hyundai Construction Equipment Co. also announced its plan to put a halt to its Ulsan plant for 10 days next month – on June 1-5 and June 15-19 – to control output amid lingering uncertainties in the market. Hyundai Construction Equipment shares rose 4.19 percent to 19,900 won.
By Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
