LiuGong eyes a future led by high-tech innovation at bauma 2019

First published at bauma - April 8, 2019

LiuGong chairman Zeng Guang’an and Howard Dale, chairman of LiuGong Europe & LiuGong Dressta Machinery

LiuGong chairman Zeng Guang’an believes that new technologies such as intelligent automation, electrification and digitalisation are driving the Chinese construction equipment machinery industry forward and inspiring manufacturers to develop their own solutions.

“The shift from ‘made in China’ to ‘created in China’ has inspired LiuGong to accelerate innovation in science and technology, with the aim of becoming the industry leader,” said Zeng.

“We aim to significantly increase investment in research and development, quality improvement and science and innovation.

“We have already started on our journey and are ready to capitalise on this opportunity to accelerate the transformation of our business to be relevant in the age of intelligent automation.

“The big trends towards equipment upsizing and miniaturisation, attachment diversification, electrification, intelligence and sharing are clear.”

Zeng said that LiuGong created a machine electrification team three years ago and the company’s first all-electric powered excavators and wheeled loaders, for its heavier range models, will be released for Chinese market customers next year.

Commenting on LiuGong’s ambitious strategic vision for 2025, Zeng added, “Our plan is to develop cutting-edge technologies, accelerate industrial transformation and constantly upgrade & internationalise our operations.

“Our aim is to be ranked in the top 3 in China and the top 10 globally by 2022 (LiuGong is currently 21st) and become the Chinese leader and innovator in our industry, with sales revenue of 50 billion RMB [€6.63bn] in 2025.”

Zeng said the key to achieving LiuGong’s goals was the manufacturer’s focus on “globalisation, complete solutions for our customers, and a focus on intelligent operation”.

“We are growing and strengthening our team with new, international talent,” he said.

“For example, our new VP of global strategy and aftersales, Kevin Thieneman, is from North America. We are committed to localising great talent in all of our global subsidiaries with local product experts, product managers, and leadership.

“Riding on the back of the recovery in the global construction machinery market last year, the company’s major international product lines achieved sales growth higher than the industry average, with its total overseas revenue rising by 30%. Now, one-third of the company’s income is from overseas business.”

LiuGong is this week showcasing 20 machines, including nine new models. Among them are the Stage V emission- compliant 21tonne 856H wheeled loader and the 30tonne class 890H wheeled loader.

Also, Howard Dale, chairman for LiuGong Europe and LiuGong Dressta Machinery, announced that LiuGong has signed a share purchase agreement to acquire the entire business of its UK dealer, CPMS. The deal creates LiuGong’s first international retail operation.

Dale said, “We have an outstanding management team at CPMS in Portsmouth. They are true retail professionals and are highly experienced in the UK Construction equipment market. The former shareholders will stay close and become directors of the new UK business.

“We are already planning investments to broaden our national coverage and will invest in people and processes to support our growth in what is Europe’s largest CE market.”

Dales said the investments LiuGong was making in the UK further demonstrates the company’s strategic intention to be a successful and long-term player in Europe.

Stand FM F4/417