Daedong to invest 80 billion won in AI-driven Daegu factory

Daedong, a leading South Korean agricultural machinery manufacturer, is transitioning its Daegu plant into an AI-driven production hub. Following the closure of its Chinese operations due to global supply chain shifts and rising protectionism, the company has signed a memorandum of understanding with Daegu Metropolitan City to invest 80 billion won into its domestic facilities.

The investment aims to implement a manufacturing AI transformation (AX) master plan by 2029. Key strategies include restructuring production and logistics, establishing new AX production lines, and integrating physical AI, robotics, and data-driven operating systems. The company plans to automate 15 major processes using AI and robots, including engine assembly and tire installation, and will deploy 12 robots to the painting process.

Through these upgrades, Daedong expects to increase its annual tractor production capacity from 21,000 units to 35,000 units, a 67% increase. The company intends to evolve from a traditional machinery manufacturer into a ‘physical AI agricultural company’ focused on autonomous tractors, precision farming, and smart farming platforms.