From The Supply Post Archives: Hyundai VIP Tour South Korea

Aug 18, 2021 - 4 years ago

From The Supply Post Archives - Hyundai VIIP Tour South Korea

“There is a saying, to see is to believe.”

That was the premise behind the recent 2004 VIP Korea Tour for North American Hyundai dealers and customers hosted by Hyundai Heavy Industries Co. Ltd. (HHI). Seventy five participants, including two journalists, were the very special guests of the Construction Equipment Division during a very full week of visits to Hyundai manufacturing facilities and cultural and tourist attractions in South Korea. Story & Photos by Jan Mansfield

Supply Post November 2004 The construction equipment division intends to become one of the top five companies in the world in the industry by the year 2010, with projected sales of $3.5-billion (U.S.). Bringing its customers and dealers from all over the world to see, smell and touch the product, and making them “believers”, is one component of reaching that goal.

The North American group included several from across Canada including 27 people from Alberta and B.C. The majority came from B.C. via Woodland Equipment Ltd., the largest Hyundai equipment dealer in Canada. Its head office is in Kamloops with branches in Prince George and Cranbrook. Jet City and Alberta’s CEM Equipment, also Hyundai dealers, rounded out the roster from western Canada.

If anyone was thinking of succumbing to jetlag they had to put it off, even though most had flown for numerous hours from all over North America to get to Korea. Shortly after their arrival in Seoul they boarded a plane to the industrial city of Ulsan on the southeast coast of the country. The first day was packed with tours of the ship yard, heavy industries and car manufacturing plant, interspersed with an amazing lunch at the Hyundai guest house overlooking the cranes of the ship yard, and ending in the evening with a magnificent reception and dinner hosted by Jong-Kie Kim, senior executive vice president of HHI’s construction equipment division.

From The Supply Post Archives: Hyundai VIP Tour South Korea — *The new 290LC-7 in action on demo day.*

Just over 30 years ago Hyundai founder Ju Yung Chung chose Ulsan, then a small fishing village, as the location to build a ship yard with financing he had obtained in England. Now the city has a population of about one million, half of whom are employed by Hyundai and its related companies. The Hyundai ship yard is the largest in the world.

The first day’s itinerary included a visit to the 60,700 sq. metre Hyundai Construction Equipment factory, located at the ship yard. Although most of the participants from B.C. are in the logging industry, the others on the tour were primarily in construction, the industry which the majority of Hyundai’s equipment is manufactured for. Currently on the production line was the new 7 Series models of wheel loaders and excavators as well as the new line of mini excavators and forklift trucks. Woodland Equipment president George Anderson noted that the future of the marketplace in construction is mini excavators.

Anderson, who was instrumental in forming the first Hyundai Dealer Council, has been a dealer for Hyundai equipment since 1991. “We didn’t know anything about Hyundai,” he recalled. “We bought the product but we had problems getting people to accept the product. They were very low priced, so as time went on, because of the low price, we were able to get people interested in them.”

Anderson said that as time went on he started asking the company to do certain things, like make available some of the logging and forestry equipment that he saw on a trip to the Hyundai factory in 1994 that was only available in the U.S.. “They started obliging us,” he said. “The president of Hyundai USA, C.M. Lee called me one day and said the log loader would be available to us, so we started ordering them.”

Hyundai continues to oblige Anderson, who appeared to know most of the Canadian and U.S. participants on the tour as well as be on a first name basis with most of the Hyundai executives. During the visit to the construction equipment facility he pointed out a difficulty with the location of a clamp on one of the front end loaders. K.Y. Kong, Manager, North & South America construction equipment division listened carefully and then called over a couple of technicians to discuss it and take note of the suggestion.

Anderson said the quality of the machinery has become progressively better over the years, and any difficulties have been handled by the strong warranty the company offers.

“The new product has really come a long way,” he said. “We notice that their quality is a lot better and we don’t have as many problems. The problems that we had in the past are behind us. The customers I have here have bought two and three machines from me and say they are thinking of buying more.”

Amongst his customers on the trip was the veteran of the group, Gordon Peters of Gordon Peters Logging Ltd., who has used Hyundai equipment for about 15 years, as long as the company has been in the North American market. Another was Bill Collison of W.R. Collison Ltd. of Clearwater who uses two Hyundai machines in his logging operation. Bruce Larson of Fraser Lake bought his first Hyundai machine in 1993. “They’ve come a long way since then,” he said, comparing his first machine to the 210 excavator mounted with a processor that he bought three months ago.

Most of the customers talked about Hyundai equipment being good value for money. In fact, there appeared to be a certain amount of surprise that equipment they bought because it cost less than other manufacturers’ products actually performs just as well.

Greg Joe, who started his Merritt-based logging company, Skyline Contracting Ltd., four years ago said he initially chose to buy a Hyundai processor because of price, and he had no preconceived ideas about which brand was best. He now has three Hyundai machines that he purchased through Woodland’s Kamloops shop where he said the mechanics don’t mind if he phones them at home, evenings and weekends if he needs service.

“It has really been an eye opener and coming over here has shown me the scale of the size of Hyundai,” Joe said. “I was a little bit worried that someday another company might combine with Hyundai and I’d never be able to get parts again. I had no idea how large Hyundai was.”

Robert Michell, owner of Selkin Logging Ltd. of Fraser Lake said price was also motivated him to buy three pieces of Hyundai equipment including two brand new processors. “By coming on this trip and seeing the backing they have and expertise that they have, probably my next purchases will be Hyundai,” he said.

Carl Kienzle, a logging contractor based in the Prince George area, bought his first piece of Hyundai equipment this spring after comparing it with other leading brands, noting that they all seemed to be using the same components. And price was a factor for him also.

The first day of the tour actually began with a visit to the ship yard and engine shop. One of the vessels under construction was a 334 metre long container ship being built for a German customer, with a capacity to carry 7,500 containers. It’s six propellers, built in Hyundai’s propeller shop which produces 200 a year, cost up to $600,000 (U.S.) each. The engine shop produces the 1,800 ton engines which account for about 10 per cent of the cost of the entire ship. The last tour on the day’s itinerary was to Hyundai’s car manufacturing plant where visitors got a bird’s eye view of the assembly line. Hyundai has 70 per cent of domestic Korean automobile market and is a major exporter of used cars to Asian countries and South America.

The day ended back at the Hyundai Hotel where the group was accommodated for the first three nights of the tour. It is located about an hour’s drive from Ulsan in the ancient city of Gyeongju, which was the capital of one of Korea’s ancient kingdoms a thousand years ago and is now a popular tourist destination. The evening dinner, hosted by Kim, featured a detailed ice sculpture of a crawler excavator as the centre piece. After dinner, before being whisked away to attend to other duties, he sat down for a short interview during which he explained why the North American market is important to the company.

“The American client demands a high level machine with more technology,” said Kim. “So if we satisfy our North American client, not only will we deliver more product but our quality will be higher.” The following day, through a written response, he expanded on his thoughts about the U.S. market in particular, leaving no doubt that it is helping to drive HHI’s expansion into the construction market and increasing its quality. “I can say that our market share in the USA will be a barometer to our success,” he said, noting that American customers’ expectations are very high. “Quality machine, competitive price, product support system is the key to survive in this market.”

“In order for HHI to become a major player, we need to effectively concentrate to increase our market share in the USA.”

The export market is 75% of the business of the construction equipment division, with China accounting for about 40% of that. Kim was responsible for initiating Hyundai’s foray into China, setting up a joint manufacturing venture in the world’s largest heavy construction equipment market in 1995, one year after he first visited the country. Hyundai is now the leading manufacturer of construction equipment in that country and has captured 25 per cent of the Chinese market.

Hyundai was able to weather the recession that hit Korea following the 1997 currency crisis in the Asia Pacific region, unlike several other Korean multi-nationals. But it was forced to restructure and shift its emphasis to R & D. It exported the first excavator developed with its own technology to the U.S. in 1988, the first market that they exported heavy machinery to. Two years ago it changed its sales and product support structure in a concerted effort to grow the business there.

Day Two of the tour provided one of the most memorable highlights of the week. As the three tour buses carrying the participants arrived at Hyundai’s demonstration site, a brass band composed of young ladies struck up as the group walked through an “honour guard” of excavators and wheel loaders, buckets lifted high in salute. About 30 people clad in the Hyundai-gray uniform greeted everyone as they were led to bleachers overlooking the “stage”. Accompanied by a running commentary and loud music, the capabilities of various types of Hyundai machinery were demonstrated in a choreographed production complete with imaginative maneuvers not likely to be used in the course of logging or on a construction site.

The show ended with a dramatic unveiling — complete with fireworks — of the new R110-7 and the R55-7 crawler excavators. Then visitors were invited to try out the various machinery, with numerous personnel on hand to answer questions. They were also invited to demonstrate their skill in maneuvering the bucket of a 55-7 mini excavator to pick up an egg on a table and deposit it unbroken into a glass of water, a skill which Troy Parker, from CEM Equipment, a Hyundai dealer of Medicine Hat, AB, seemed to have honed. Carl Kienzle, a logging contractor based in the Prince George area said it gave him an idea of something to try with his employees during spring breakup.

Before leaving the Ulsan and Gyeongju areas there were visits to the POSCO steel mill which puts out over 26 million tons of steel a year and supplies Hyundai, one of the company’s major shareholders. A Buddhist Temple and ancient tombs, looking like a number of large hills, gave the group a chance to learn about the ancient culture of the area.

At the airport in Ulsan, Choon-Oh Ma, Director of the Construction Equipment Division was there to see the group off. It was he that said “There is a saying, to see is to believe.”

“Hyundai is not so well known to westerners,” he said. “By coming here more westerners can fully understand what Hyundai is, what Hyundai is doing. We want our company and our customers to be mutually prosperous.”

Ma mentioned in conversation that extensions have just been completed at the engine shop and the shipyards. However one of the company’s new products, a hydraulic truck crane, is being manufactured at Hyundai’s factory in China because the Korean factory does not have the available manufacturing capacity. He also said that the new excavator models which have just passed the design stage will also be produced in China, probably beginning next year. Beyond the equipment division Hyundai is concentrating on its forays into Information Technology and Bio Technology, and establishing new R&D centres in Europe, the United States and Russia.

One of the most important factors in making the tour such a pleasure for the participants was the level of organization and attention to detail paid to every aspect of the trip. A tour guide was assigned to each of the three tour buses and escorted their group throughout the week. The guides, young women with a great amount of personality, fluent in English, and very knowledgeable about both the company and their country, were adept at walking the fine line between entertaining a bus load of energetic men and laughing strategically when the conversation and jokes became decidedly salty. The sometimes lengthy bus rides were never dull as they interspersed Korean history with interesting cultural facts and trivia, plus lessons in how to say hello and thank you, and the importance of trying kimchi, Korea’s national food. They were also charged with ensuring that their entire group made it from Ulsan to Seoul, where the final three nights were spent at the luxurious Seoul Plaza Hotel across from City Hall. Their first morning in Seoul the group was met by the bus they were assigned to, the drivers having driven all night to arrive in time to continue the tour. Also on hand was the ever-present videographer who seemed to capture every moment of the trip for posterity.

The three days in Seoul consisted of sightseeing and opportunities to shop for goods such as custom made suits (ready in 24 hours!) at a fraction of the price in Canada. From the top of the Seoul Tower the group got an idea of how densely populated the city is, with highrise building stretching as far as one could see. Of the country’s 47-million people, 10.5-million live in Seoul.

A visit to the recently completed Korean War Museum which documents the events leading up to the division of the country into North and South Korea in 1945 and the subsequent war from 1950 to 1953 was much too short, and reason enough for a return visit to the city.

During the entire tour a large number of Hyundai executive accompanied the group. They included J.J. Kim, president of Hyundai’s North American division based in Chicago, ILL, as well as National Service Manager David Pooley, who also works out of the Chicago office. He said that in the eight years he has been with the company the biggest change he has seen is in the quality of the machinery, and the technology being integrated into the products. For example, he said, the new Seven Series machines have more integrated circuits and modular systems. Troubleshooting has been made easier with the on board diagnostic systems now on the excavators and the wheel loaders. “If an operator calls a mechanic and says he has a problem, there’s a light flashing, they can tell him ‘go to this menu, have a look and see what the code is’. You have a visual readout of the code. And if you go into the menu you can actually see the full written explanation right on the screen of the problem. It gives a mechanic a heads up before he even gets out there. A lot of times he can come out with the part in his hand.”

“The industry has moved to that point now - people want information. And they want it as part of the deal - not an option,” said Pooley, who pointed out that Hyundai equipment sold in North America comes with air conditioning, radios, spare spools for equipment, etc. as standard equipment.

On the final evening before the group departed Korea, Ma bid everyone goodbye at a lavish farewell dinner. He will be getting to know the individuals in the group more when he takes over J.J. Kim’s position at the North American headquarters in a few months’ time. Anderson declared the trip a success. He said he has brought people on previous trips and that has resulted in them buying more machines from him. “We think it is important, although it costs us quite a bit of money to bring them here,” he said. This time he brought along four people who work for the company. He said they will try to eventually bring all their staff members.

This article first appeared in Supply Post, November 2004 issue.

From The Supply Post Archives: Woodland Keeps Pace With Changes

The recession, which began in 1980 and took its toll on the machinery business including the logging industry, started to change in 1985. Woodland which also began business in 1980, selling used parts to keep the older units operating, noticed a down-turn in the availability and sales of used parts. Customers were looking to the aftermarket suppliers for new parts to keep their costs in line on the older units, or were purchasing new machines.

From The Supply Post Archives: Hyundai VIP Tour South Korea

The skidder industry is not new to the owners of Woodland, who began their careers in the wheel skidder industry in the 1960s. George E. Anderson began his apprenticeship in the mid 1960s in Prince George with Inter Mountain Equipment, an early Timberjack dealer, at the same time as Wayne C. Gilroy was a heavy duty mechanic for the same company in Kamloops, B.C. Both parties were employed by the Timberjack dealer in Kamloops, when a turn of events caused Anderson to make a change in his career in late 1979 and form a used parts outlet for the skidder industry in Kamloops in early 1980. He took Gilroy as a partner about two years later. The recession was the cornerstone for woodland as many dealerships and businesses were closing their doors, which inspired the two partners to open new outlets in other cities in B.C., and allow experienced people in the skidder industry to purchase shares in these outlets.

The owners found that, in today’s changing market, an aftermarket parts outlet must create their own marketplace as dealerships themselves are attracting customers through long term warranties on new machines, as well as stocking aftermarket parts to compete against the new and used parts outlets. Woodland distributes aftermarket parts for all makes of wheel skidders from the dozer to the fair lead, as well as parts for other units which utilize Clark components, GM and Cummins engines, Clark, Eaton and Rockwell axles.

In 1985, Anderson approached Tree Farmer for a dealership in British Columbia, but due to a move by the factory from Canada to the U.S.A. at that time, coupled with changes in their product line, he was advised that they were not ready to enter the B.C. marketplace. However, since that time successful changes to the Tree Farmer skidder have allowed for heavier frames and components such as the new series Cummins engines, Clark transmissions and winches, and heavy duty axles. All this and more made the new unit a competitive and saleable machine, a much improved skidder from 10 years ago. The Tree Farmer manufacturers were now ready to commit themselves once gain to the western marketplace. The decision to move to Prince George, B.C.’s largest trading population of wheel skidders, was brought about with the signing of the dealership for Hawker Siddley’s Tree Farmer skidder in British Columbia and Alberta as well as being the Master Distributor for Korody Colver’s Detroit and Cummins engine parts for the interior of B.C. Woodland now has outlets in Cranbrook, Vernon, Kamloops, Prince George, and Grande Prairie. The Grande Prairie branch is also a distributor of Prentice hydraulic log loaders as well as Hydro Ax rubber tired boom feller bunchers.

The owners and staff of Woodland Heavy EQuipment Parts Ltd. are dedicated to quality service for their customers and are looking forward to many more successful years of business.

This article first appeared in Supply Post, January 1989.

From The Supply Post Archives: From Kamloops To Korea!

Woodland Heavy Sponsors Logging Contractors On Manufacturers Tour

Supply Post May 1996 McNabb Brothers Logging has been cutting timber in the central interior for over 30 years and is one of Ainsworth Lumber Company Ltd.’s larger contractors. Gordon McNabb is an owner operator and has had a lot of experience with various machines over the years. The first of their 2 Hyundai machines was a 290LC with a Limmit 2300 Stroke Roll Delimber, which they’ve been running about a year and a half. Their second machine was purchased about six months ago and is a Hyundai 200LC with a Limmit 2100. One of the first things Gordon noticed with the Hyundai’s was their track power and impressive hydraulic flow compared to older machines. Gordon says this is very noticeable when using the machines and the functions are “really smooth” as a result of the good hydraulics. Success as a logging contractor depends on the availability of your equipment when the woods are open. Gordon tells us that NcNabb Bros. has been pleased with the service provided by Woodland Heavy Equipment, their Hyundai dealer who provides them with the support for their machines, “they’ve been right three to help when we’ve had any problems,” he says. McNabb Bros.’ newest partner, Danny Real, is getting the chance to have a close look at Hyundai as a company. As part of a group of Woodland and U.S. Customers traveling to Korea as guests of Hyundai, Danny will visit the Hyundai factory and see first hand how their machines are built, and learn a little about the people that build them and their country.

This article first appeared in Supply Post, May 1996.

Editor’s Update:

Woodland Equipment has been a long-time advertiser & friend to Supply Post. We hope you enjoy these stories about them from past issues. Woodland Equipment today has five branches in Kamloops, Prince George, Vernon, Fort St. John, and Cranbrook. We encourage you to take a look at their adverts on pages 10 and 35 in our September 2021 issue, and visit their website at www.woodlandequip.com.