November 26, 2024

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Doosan Bobcat's S590, a compact and highly maneuverable skid-steer loader from its M-Series lineup (Doosan Bobcat)

Korean construction equipment maker Doosan Bobcat said Wednesday it will build a production base worth $300 million in Monterrey, Mexico, situated close to the US-Mexico border, to boost supply chain efficiency and cater to the increased post-pandemic demand within North America.

With operations expected to commence in early 2026, the new Monterrey plant is projected to increase Doosan Bobcat's loader production capacity in North America by 20 percent. Specifically, the 65,000 square meter site will be dedicated to manufacturing the company’s core lineup of M-Series loaders, which have gained traction across various industries for their versatility and reliability in construction, agriculture and more.

Meanwhile, the company's existing facility in Gwinner, North Dakota, which previously produced M-Series loaders, will pivot to the production of R-Series loaders -- a premium lineup introduced in 2020 with advanced operational capabilities and operator comfort features.

"Our company's size has doubled in the last five years, along with the demand for our products. We will use this new production location as a springboard for long-term growth," said Scott Park, CEO and vice chairman of Doosan Bobcat.

The plant will extend Doosan Bobcat's global production reach, which already spans South Korea, the United States, the Czech Republic, Germany and India. Locating the plant in Monterrey is expected to be beneficial for the company because of the city's status as a duty-free zone under the US-Mexico-Canada Agreement, under which Doosan Bobcat can export its loaders from Monterrey to the US and Canada without paying tariffs, as long as the company meets the rules of origin and origin procedures specified in the agreement.

By Moon Joon-hyun (mjh@heraldcorp.com)