Daedong Gear (CEO Seo Jong-hwan), a power-train company of Daedong Group, announced on the 14th that it has won orders for key components worth a total of 262.8 billion won in the first half of the year for major customers including Hyundai Transys, the world's third-largest global agricultural machinery maker A, and domestic construction equipment and parts core company D. This is about 119% of last year's annual sales (about 220.9 billion won). Actual sales will be recognized sequentially from the time individual orders (POs) are issued.
The order was secured by various industries such as agricultural machinery, electric vehicles (EVs), and construction equipment. Daedong Gear is promoting global customer diversification based on its business portfolio that is not biased toward a specific industry, and is also speeding up the conversion of its electrification-oriented business portfolio. Daedong Gear, which has continued to expand orders based on its technological competitiveness, has accumulated orders worth a total of KRW 1.864.4 trillion from January 2024 to May 2026.
First, Daedong Gear won a contract from Hyundai Transys to supply Output Shaft Assy for electric vehicle (EV) reducer. The total supply volume is about 138.5 billion won, and the supply period will be applied to a total of 3.24 million vehicles for eight years from 2027. Daedong Gear plans to start mass production in April 2027 after pilot production in November this year.
It will then supply three types of gearboxes for tractors to company A, the world's third-largest global agricultural machinery company. The product will be applied to Company A's tractors, and the estimated sales volume is about 71.8 billion won over seven years. Sample orders are currently underway with the aim of mass production supply in the second half of 2027, and full-scale sales are expected to occur from the second half of 2027.
In particular, this order from Company A is significant in that it is the first supply contract signed by Daedong Gear with an overseas agricultural machinery company. Since CEO Seo Jong-hwan, a global sales and marketing expert, took office last year, it has expanded its suppliers to global top tier agricultural machinery companies through strategic overseas business activities, speeding up its efforts to target overseas markets.
In addition, the volume can be mass-produced using existing production facilities without investing in new facilities, which is expected to have a positive effect in terms of profitability. Through this supply, Daedong Gear will be verified for its development, quality, and price competitiveness in the global market at the same time.
In addition, Daedong Gear has also won a contract to supply a reducer for small excavators from company D, a key construction equipment and parts company in Korea. The supply period is six years from 2026, and the estimated sales volume is about 52.5 billion won. Through this order, Daedong Gear will continue its supply performance in the construction equipment sector, following agricultural machinery and electric vehicle parts.
Daedong Gear is discussing an additional supply project worth about 300 billion won in the electric vehicle and agricultural machinery sectors in the second half of the year. Based on this, the company aims to achieve at least 500 billion won in new orders this year, and if it goes as planned, the cumulative annual order is expected to expand to about 570 billion won.
Seo Jong-hwan, CEO of Daedong Gear, said, "This order is an achievement of recognizing Daedong Gear's technology and supply capabilities in various industries such as agricultural machinery, electrification, and construction equipment. We will continue to strengthen our global business competitiveness by diversifying customers and upgrading our business portfolios."
Meanwhile, Daedong Gear is also pushing to enter the robot core parts business such as reducer and actuator in connection with the group robot business. Based on existing powertrain and precision gear processing technology, the strategy is to expand the business area to the core parts of robot driving and strengthen the foundation for mid- to long-term growth.
