Doosan Bobcat

Doosan Bobcat Introduces 12 New Products - at a European Virtual Product Launch

Doosan Bobcat announced on 22 October 2020 that it had held a virtual new product launching event on October 21 (local time) at its EMEA (Europe, Middle East and Africa) subsidiary based in the Czech Republic, where it introduced a total of twelve new products, the most it has ever introduced at any event.
The new products included a compact wheel loader and a light compaction* customized for the European market, in addition to an R-series small loader and an R2-series mini excavator, both significant upgrades of existing products.
*Compaction: Used to compact soils most efficiently.
The compact wheel loader, which was unveiled for the first time at the event, is a piece of European-specific equipment that can maximize work efficiency even in narrow places with its excellent loading capacity and horizontal articulation feature. Doosan Bobcat plans to boost its market presence in the European compact wheel loader market, estimated at around 20,000 units a year, by achieving an annual sales goal of more than 1,000 units within the next five years. At the product launch, the Company also unveiled its light compaction equipment crucial for asphalt road construction for the first time.
In addition, Doosan Bobcat took the opportunity to announce the European launch of its R Series compact loader, which was introduced in North America last year, attracting a great response, and the R2-Series mini excavator, an upgraded version of its R Series excavators. The European mini excavator market stood at around 90,000 units a year in 2019, accounting for more than 80% of the continent’s total compact construction equipment market. Doosan Bobcat has continuously expanded its market share in the market by strengthening its local dealer network and enhancing its marketing capabilities. It now plans to achieve a 10% market share in Europe in a year or two - largely through the launch of new products.
At the event, the Company also showcased its latest technologies - the results of its intensive innovation efforts - including 'Max Control,' a smartphone-based remote control technology, and 'Features on Demand', which is designed to enable the user to place an order for optional features in the most convenient way, for the first time in the European market.
A representative of Doosan Bobcat said, “The event was significant in the sense that it shared with visitors the strategic direction the Company intends to take to increase its market presence in the continent,” adding, “We will further strengthen our position as a global leader by concentrating our core competencies under the company's iconic slogan “Next Is Now!”, which refers to the its commitment to redefining the compact equipment market by continuously expanding its product lineup and pursuing technological innovation.”

2020-10-22

Doosan Bobcat Launches Its Own Brand ‘ZTR Mower’ to Expand Its Share of the Turf & Landscape Market

Doosan Bobcat announced on September 9 that it was due to launch the ZTR Mower,* which has been upgraded with the company’s unique design characteristics, for the North American market as part of its efforts to make inroads into the global Turf & Landscape market. It plans to introduce the new product through its strong dealer network, and also expects significant synergistic effects on the sales of its flagship compact construction equipment.
*Zero-turn Mower (ZTR Mower): Equipped with zero-turn (zero turning radius) technology, zero-turn riding lawn mowers boast unrivalled performance efficiency compared to existing lawn mowers.
Doosan Bobcat entered the GME market last year by acquiring the zero-turn mower business unit of Schiller Ground Care, a renowned American lawn and landscape equipment manufacturer. North America’s zero-turn mower market records sales of at about 810,000 units per year, worth some US$4.8 billion (about 5.7 trillion won), showing a steady average annual growth rate of 7.8% over the past five years. Doosan Bobcat originally planned to launch its zero-turn mowers, equipped with the company’s unique design characteristics, towards the end of the year, but it has succeeded in advancing the schedule by as much as three months thanks to its faster-than-expected success with the PMI (post-merger integration) process and other efforts to enhance the product.
On the back of its high brand awareness and strong dealer network in the North American market, Doosan Bobcat aims to stabilize its market position as early as possible in order to achieve 100 billion won in sales in 2020 and more than double the figure by 2024.
An executive of Doosan Bobcat said, “The North American landscape market has shown a relatively stable growth trend as demand among farmers who grow plants or crops as a hobby has steadily grown despite the impacts of the COVID-19 pandemic,” adding, “We will also seek to maximize our synergistic effects on the sales of our existing construction equipment by continuing to expand our GME (compact farming and landscaping equipment) lineup.**
**GME (ground maintenance equipment) refers to compact farming and landscaping equipment.
Doosan Bobcat has been accelerating its GME business since 2019, selling more than 1,700 compact tractors in the first half of 2020 in the North American market after launching the models there in September 2019. The company’s other GME products - including mini track loaders (MTLs) and utility vehicles (UVs) - have also shown steady growth in the market. Overall, Doosan Bobcat recorded GME sales of about US$140 million, an increase of more than 200% over the preceding year, in the North American market during the first half of 2020.

2020-09-09

Doosan Bobcat Set to Expand Presence in China’s Compact Excavator Market

Doosan Bobcat announced on Aug 5 that it had kicked off the production of compact excavators (1-2 ton) in China, thereby positioning itself as a leading player in the Chinese market for compact construction equipment. The company aims to continue increasing its market share in the huge construction market on the back of the superior cost competitiveness and faster customer response enabled by the local production of its compact excavators.
Doosan Bobcat’s Suzhou Plant in China has now started producing two compact excavator models, the E17Z and the E20Z, in China, whereas it previously had to import them from its plant in the Czech Republic. With the localization of production, the company can boost price competitiveness while shortening the lead time, creating the flexibility necessary to respond quickly to changes in demand. The most notable feature of the 1-2 ton excavators is their zero tail-swing (ZTS) design, which requires a minimal swing radius while guaranteeing the highest level of operational efficiency in even the tightest spaces.
The Chinese market for compact excavators (3 tons or less) on which Doosan Bobcat is focusing its resources is estimated to have exceeded 7,000 units per year after growing at an impressive annual rate of 80% between 2016 and 2019. Doosan Bobcat now plans to achieve a double-digit market share in China within three years based on its high product competitiveness and differentiated financing programs.
“The Chinese compact excavator market is expected to continue growing due to the increasing number of indoor jobsites and rising labor costs in line with the country’s rapid urbanization,” said an executive from Doosan Bobcat. “With China as its production base, Doosan Bobcat plans to continue expanding its sales in other emerging markets not only in Asia but also in Oceania and Latin America.”
Meanwhile, Doosan Bobcat has expanded its compact construction equipment business in China in recent years. In 2017, it kicked off the local production of its compact loader, Earthforce, targeting the Chinese market in particular, while in 2019 it began producing its smallest loader, the S70, in China to meet the particular demands of the market.

2020-08-05

Doosan Bobcat Successfully Establishes Itself in North American Compact Tractor Market

Doosan Bobcat has successfully established itself in the North American compact tractor market, showing a steady increase in sales so far in 2020.
On June 18, the company announced that the compact tractor it launched last year is doing very well in the North American market this year, with total sales standing at 1,400 units as of the end of May. The achievement is all the more impressive given the unusual situation caused by the COVID-19 pandemic. At present, the product looks highly likely to surpass the annual sales target of 3,000 units in the North American market before the year’s end.
The continent’s compact tractor market amounts to approximately 170,000 units per year. Doosan Bobcat aims to seize a 10% share, i.e. 300 billion won in sales, of the market by 2025.
The main reasons why Doosan Bobcat's compact tractors have established a presence in the North American market so quickly include its unique brand recognition in the compact equipment market and the reliable service of its local dealers. Doosan Bobcat has maintained the highest market share in the North American compact construction equipment market for over ten years on the basis of its strong sales network, which comprises over 600 outlets, and its abundant sales know-how.
“Despite the recent impact of COVID-19 in North America, Doosan Bobcat's unique competitive edges, including its excellent product performance and diverse financing programs, have resulted in steady sales increases, with the synergistic effects expected to spread to sales of the company’s compact tractors and other compact equipment,” said an executive of Doosan Bobcat, “We will consolidate our position as the leader of the global compact equipment market by continuously expanding our product portfolio.”

2020-06-18

Doosan Bobcat announces $300 million Senior Secured Notes Offering

Seoul, South Korea –May 20, 2020– Doosan Bobcat, Inc. (“Doosan Bobcat”) (KRX: 241560) today announced that its direct, wholly-owned subsidiary, Clark Equipment Company (the “Issuer”), plans to conduct an offering of $300 million in aggregate principal amount of senior secured notes due 2025 (the “Notes”) in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), subject to market conditions. The Issuer intends to use the net proceeds from the offering for general corporate purposes and to pay related transaction fees and expenses.
The Notes will be guaranteed by Doosan Bobcat, which also guarantees indebtedness under the Issuer’s term loan agreement (as amended from time to time, the “Term Loan Credit Agreement”) and asset-based revolving credit agreement (as amended from time to time, the “ABL Credit Agreement”). The Notes will be secured by a first-priority lien on all of the Issuer’s and Doosan Bobcat’s assets that secure indebtedness under the Term Loan Credit Agreement on a first-priority basis, and by a second-priority lien on certain current assets of the Issuer that secure indebtedness under the ABL Credit Agreement on a first-priority basis.
The Notes will be offered in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain non-U.S. persons in transactions outside of the United States in reliance on Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or the securities laws of any state or jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.


About Doosan Bobcat
Doosan Bobcat, founded in 1947, is a leading global manufacturer and distributor of construction equipment, related attachments and portable power equipment, focusing on the compact construction equipment market with premium brands and leading market positions. Our products serve various industries, including the construction, landscaping, agriculture, oil and gas, mining and manufacturing industries. Doosan Bobcat products are marketed globally under two key brands “Bobcat” and “Doosan”.


Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release are forward- looking statements, including all statements regarding the offering of the Notes. Forward-looking statements are generally identified by our use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “seek”, or “should”, or the negative thereof or other variations thereon or comparable terminology. Where, in any forwardlooking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans, expectations, assumptions, estimates, and projections of our management. Although we believe that these statements are based on reasonable expectations, assumptions, estimates and projections, they are only predictions and involve known and unknown risks, many of which are beyond our control, that could cause actual outcomes and results to be materially different from those indicated in such statements.
The forward-looking statements included in this press release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.


Contacts
Doosan Bobcat, Inc.
Youngil Kang General Manager,
Investor Relations
youngil.kang@doosan.com

2020-05-20