Daedong Accelerates Manufacturing AX at Daegu Plant... Integrating Physical AI

Four Core Manufacturing AX Strategies to Be Implemented by 2029

Daedong is accelerating its transformation toward Manufacturing AI Conversion (AX) by introducing artificial intelligence (AI), robotics, and data technologies into its production sites. The company plans to convert its Daegu plant into a future-oriented physical AI-based production system aimed at enhancing productivity, quality, and market responsiveness.

On August 20, Daedong announced that it has signed a memorandum of understanding (MOU) with Daegu Metropolitan City for domestic reshoring and investment in factory AX. According to its ongoing “Daegu Plant Manufacturing AX Master Plan,” Daedong has set out four key strategies: restructuring its production and logistics systems; building new AX production lines; converting existing production lines to AX; and establishing a data- and AI-based factory management system. The company aims to implement these strategies by 2029.

The core of this Manufacturing AX initiative is to automate repetitive and high-intensity tasks with AI and robots, and to interconnect and analyze production, quality, and logistics data through AI, thereby improving productivity, quality, and manufacturing flexibility. Currently, the Daegu plant produces about 200 tractor models for export to over 70 countries. As products become larger and more advanced, and as the company expands into new global markets, there is an increasing need for a flexible production system that can adapt to these changes.

On the 20th, Won Woohyun, Vice Chairman of Daedong (right), and Chu Kyung-ho, Mayor of Daegu, are taking a commemorative photo after signing the business agreement. Daedong

Daedong will gradually deploy physical AI technologies in 15 major processes of its new AX production line, where AI and robots will perform actual work. AI will be used to optimize the production sequence and process management. Additionally, 12 robots will be introduced to the painting process to enhance efficiency and uniformity while also improving workplace conditions.

Quality control will also be advanced by focusing on AI and data. Vision inspection, using cameras and AI, will detect anomalies such as incomplete assembly and oil leaks, while the final stage of the production line will automatically check the software and system status of completed agricultural machinery. By linking inspection results with production history data, Daedong will analyze the causes of defects and introduce an AI-based quality management system to predict potential defects.

The factory’s operational methods will also shift to a model centered on data and AI. Production, logistics, and quality data will be integrated, and AI agents will be gradually introduced for workstreams such as purchasing, materials, production, and quality, supporting tasks like production planning and quality control. The layout of current production and logistics systems will be restructured. The company plans to simplify production lines and logistics routes, and to optimize supply methods based on material characteristics by using autonomous mobile robots (AMRs), logistics trains, and electric forklifts, establishing a flexible production system capable of responding quickly to changes in product specifications and production schedules.

The restructuring of the production and logistics systems and the adoption of AI and robotics are expected to increase production capacity and boost process efficiency. The plant’s annual tractor production capacity will expand by approximately 67%, from 21,000 to 35,000 units. Annual painting capacity will rise 80%, from 35,000 to 63,000 units. Work time per unit will be reduced from 2.3 minutes to 1.9 minutes, resulting in about a 17% improvement in painting productivity.

Won Yuhyun, Vice Chairman of Daedong, stated, "Following our agricultural AX initiative, we will accelerate our manufacturing AX to develop the Daegu plant as Daedong’s standard model for manufacturing AX and as a core production base for next-generation agricultural machinery. We will expand the AI, robotics, and data-based production system established on the new AX line to existing lines and gradually roll out these advancements to our global manufacturing hubs."

This content was produced with the assistance of AI translation services.