Daedong announced Thursday it has developed 12 engine power pack models based on its 19- to 140-horsepower industrial diesel engines and will target domestic and overseas OEM customers in the industrial equipment sector. [Daedong]
Daedong announced Thursday it has developed 12 engine power pack models based on its 19- to 140-horsepower industrial diesel engines and will target domestic and overseas OEM customers in the industrial equipment sector. [Daedong]

12 power pack models built on 19- to 140-hp diesel engines

Integrated engine, transmission and axle supply cuts development burden

70 billion won engine supply deal with Doosan Bobcat targets construction equipment market

Daedong is entering the engine power pack market, integrating industrial diesel engines with peripheral components into a single package. The company plans to move beyond supplying standalone engines and expand into an integrated powertrain business that encompasses transmissions and drivetrain systems.

Daedong announced Thursday it has built 12 engine power pack models based on its 19- to 140-horsepower industrial diesel engines and will pursue original equipment manufacturer customers in the domestic and overseas industrial equipment sectors.

An engine power pack is a power package that integrates a diesel engine with components needed to drive equipment — including a radiator, air cleaner, fuel filter and display controller. Finished equipment manufacturers no longer need to source peripheral parts individually or design separate systems, reducing the burden of product development and installation.

Daedong currently installs its in-house-developed diesel engines in approximately 25,000 of its own agricultural machines annually and has also supplied engines to finished equipment manufacturers at home and abroad. The company plans to use its entry into the power pack business as a springboard to expand its engine operations — centered on agricultural machinery — into the construction and industrial equipment sectors.

Power pack configurations can be tailored to a piece of equipment's output requirements, installation space and operating environment. The packs are designed for use in generators, agricultural pumps, construction equipment, and specialized environmental and industrial machinery.

Daedong will also supply a "component kit" that lets customers select only the parts they need, as well as a "powertrain package" that integrates the engine, transmission and axle. The powertrain package pre-validates engine and drivetrain combinations to shorten equipment development timelines and consolidates performance guarantees, quality assurance and after-sales service into a single point of contact.

Daedong already has a track record in OEM supply for the construction equipment sector. In 2023, it signed a diesel engine supply contract worth about 70 billion won ($52.8 million) with Doosan Bobcat's North American subsidiary, covering 1.2-liter and 1.8-liter diesel engines over a five-year period from September 2023 to September 2028. The company also supplies engines for Hyundai Engineering & Construction Machinery's skid loaders.

In December 2024, Daedong signed an additional OEM supply contract with Doosan Bobcat's US subsidiary for compact and mid-size tractors and powertrains, valued at 361.2 billion won. That contract runs from 2025 through 2028. The latest power pack push extends the company's supply scope beyond finished equipment to industrial engines and peripheral components.

Growth in the industrial diesel engine market is another factor driving the expansion. According to global market research firm MarketsandMarkets, the global diesel power engine market is projected to grow from $20.1 billion in 2024 to $25.2 billion in 2029, a compound annual growth rate of 4.5 percent.

"Daedong has developed and produced engines in-house, applied them to finished equipment, and accumulated integrated powertrain technology along the way," said Han In-gi, head of Daedong's global business division. "We will reduce the parts procurement and product development burden on our customers and expand our industrial power solutions business — from standalone engines all the way to complete powertrains."


hong@heraldcorp.com