Soosan Heavy Industries manufactures truck cranes and hydraulic breakers, which break the bedrock by attaching directly to an excavator. Number one in the Korean market and one of the top five worldwide, the company is aiming, with the marketing support from KOTRA, to join the top three hydraulic breaker manufacturers in the world by targeting the emerging markets including India and achieving a total of 100 million dollars in exports. The vast majority of the products were developed by the company, and 70 percent of the total production is exported to more than 70 countries around the world. While Europe, the Middle East, and Asia used to be the biggest markets for Soosan, now Europe is gone and Asia, especially China, and the Middle East have become two major markets, the company explains.
Resurgence after adversity
The history of Soosan Heavy Industries is full of ups and downs. Founded in 1984, the company once boasted the annual sales of over 140 billion won after going public in 1991, but went bankrupt in 1991. After being under court receivership, Soosan was sold to a new owner in 2004 and the management began to stabilize. Selling special purpose vehicles of Susan Motors, an affiliate firm, the company's total annual sales in 1996 exceeded a staggering 140 billion won, but the bankruptcy in 1997 meant the sales dropped to around 40 billion won. However, after new management took over in 2004, the sales have been showing a steady rise, which can be mainly attributed to active overseas marketing strategies. The company's sales increased from 52.5 billion won in 2005 to 100.9 billion won in 2008 - threefold growth in just three years. The hydraulic breakers, the company's main product, led to an impressive improvement in sales performance as they sold total 30.7 billion won in 2005 and 58.4 billion won in 2007.
Diversified management strategies
Jeong Seokhyeon, who established Sukwon Industrial in 1984 as a plant construction and maintenance business, has been managing the company since he took over Soosan Heavy Industries under receivership and became the president in 2004. After the takeover, he pursued selection and concentration strategies by, for instance, reducing the number of models from over 130 to around 60. In addition, Mr. Jeong chose to differentiate the brand by enhancing the warranty service, targeting the overseas markets where the company competes with rival companies from developing countries like China and Vietnam. The price always has been one of the strong points of Soosan, and the product quality was further compensated by excellent customer service. Continuous research and development at the company's research center established in late 1991 resulted in Susan's own products that have proved competitive in global markets. Soosan now owns more than 100 patents and received a 30 million-dollar export certificate in 2006 before Mr. Jeong was awarded with Gold Tower Order of Industrial Service Merit in 2008. Soosan is a leading example that an established company that has enjoyed great success in the domestic market must step out of the comfort zone and advance to and compete in overseas market.
Soosan Heavy Industries Co., Ltd. has been awarded the KOTRA Seal of Excellence since 2009.
