DEVELON

Doosan Infracore reported that construction of a new factory in Gunsan has begun in an effort to reinforce the company’s ability to supply construction equipment in time to meet demand in the market.

The Company plans to build a production line with the annual capacity of 4,000 units of heavy-duty excavators and wheel loaders at the 610,000 square-meter (=150 acre) site in the Gunsan National Industrial Complex, investing a total of 114.6 billion won by next year.

A Doosan Infracore official said, “The construction of the Gunsan Factory is in line with the strategy to secure stable domestic production capability. We plan to commence mass production from 2010 and push ahead with the plan for Phase 2 and 3 in stages.”

The Company plans to adopt an optimal production system in the new factory in the port city of Gunsan for strategically important, globalized, next-generation heavy-duty excavators and wheel loaders, making it a core, standardized production facility.

The Company is scheduled to complete the work for the new factory by August 2009 after starting the foundation work in November 2007. With its commencement of mass production of excavators and wheel loaders in January 2010, the Company is expected to contribute greatly to invigoration of the local economy in the area.

The management of the Company expects that the new factory located close to Gunsan New Port and the West Coast Highway will also go a long way in reduction of its logistics expenses for the transportation of both export cargoes and those bound for other areas in Korea.