Innovation and Transformation, LiuGong Explores a Sustainable Path to the Future
30 November 2018
Today, LiuGong held 2018 Global Dealer Conference at Liuzhou, Guangxi, China, where its headquartered, with the theme of “Innovation & Transformation-The Road for the Future.”, trying to explore a sustainable path to future development. A total of 700+ attendees from more than 70 countries, comprising of government officials, LiuGong global dealers, leaders from industry associations, partners, media friends and LiuGong leaders & employees gathered together to celebrate the achievements in the last year and share the opinions for the future development.
Mr. Zeng Guang’an, Chairman of LiuGong Group addressed the meeting: “Sixty years of passion, across changing markets and fierce competition. The spirit and core values of LiuGong, along with the idea of constantly creating value for customers, and making contributions to society have led LiuGong from a remote enterprise to an international enterprise.”
Started from 2003, LiuGong’s Global Dealer Conference has become one of the most important events for LiuGong. The annual celebration has showcased LiuGong’s growth from emerging to strong and from China to an international enterprise. And just yesterday (November 26, 2018), LiuGong celebrated its 60thAnniversary at its International Industry Park. For 60 years, LiuGong has evolved from a Guangxi wheel loader manufacturer to a world leading producer in the production of a full range of construction machinery that’s ready for extreme duty all over the world as well as a provider of total solutions for its customers; fulfilling various needs related to construction machinery and its usage. For 60 years, LiuGong has been enthusiastic and innovative, taking the lead in Chinese enterprises’ reformations, technology transformations and being a pioneer of Chinese enterprises to “go global”, becoming a demonstration for Chinese CE companies that seek for growth and a globalized development path.
Established in 1958, LiuGong was the designer and manufacturer of Chinese first modernized wheel loader in 1966. In the 1980s, LiuGong introduced western technology to China and prepared for company’s next development phase that LiuGong launched its 2nd generation wheel loaders - ZL50C, which later became the benchmark of the industry; designing the world’s first plateau wheel loader, laying foundation for LiuGong as the world’s leader in designing and manufacturing of wheel loaders. In 1990s, LiuGong started its R&D of excavators and soon it became one of the most important business segments for LiuGong. In 2010, LiuGong opened a manufacturing facility in Eastern China in Changzhou to design and produce large tonnage excavators. And now, LiuGong excavators have evolved into LiuGong’s fastest growing business segment with the highest sales increase year over year and the highest profitability. In addition to wheel loaders and excavators, LiuGong now has a full range of 19 product lines.
Thanks to the long-term investment in R&D and talent cultivation, LiuGong can quickly apply technology innovation to products, creating more value for LiuGong customers.
In 2007, LiuGong launched the first overseas R&D Center in India and in 2015, the Global R&D Center & National Earthmoving Machinery Engineering Center opened in Liuzhou. With a total investment of more than 270 million RMB and an area of 100,000 square meters. This state-of-art R&D Center has a series of individual laboratories such as indoor heat balance test rooms, the engine test rooms and the first civil NVH semi-anechoic test room in domestic areas etc., all equipped with world-class testing facilities. It also includes a large outdoor test area for real world testing of our machinery. More than 1,000 engineers are spread out in China and four R&D centers in the U.S., Poland, India and the U.K. Not only do they share resources with headquarters but go to the local markets for a face-to-face interaction with our customers, providing innovative solutions that are suitable for local markets.
Speaking of the future, Mr. David Beatenbough, LiuGong Vice President in charge of the R&D, shared: “LiuGong’s Development Process (LDP) not only ensures our products are exactly what markets need, it enables the accumulation of LiuGong’s R&D outcomes and speeds up the transition into machine design and the upgrading of LiuGong products. It also provides solid and vast knowledge for the cultivation of LiuGong’s new engineers.” As a result, LiuGong’s achievements have been vast reflected in both advanced technologies and new products. In 2016, LiuGong launched its revolutionary vertical lift wheel loader, which creates a new class of the machinery; In 2018, CCTV reported LiuGong’s innovative torque convertor which successfully assisted LiuGong’s 8128H, China’s largest wheeled loader, to overcome technical difficulties and complete the Sichuan-Tibet railway construction project. The torque convertor was independently custom designed and manufactured for the 8128H with many innovative technologies and approaches. Additionally, during yesterday’s celebration, LiuGong launched 6 new products, including the 990F excavator, 886H wheel loader, B170DL bulldozer, 4180 motor grader and S935 sugarcane harvester.
In conjunction with the big data and intelligent development, LiuGong promoted “total intelligent” as a strategy. And under this guidance, LiuGong developed a whole new intelligent management system, which is now applied in more and more of LiuGong’s equipment to optimize machines’ controllability for LiuGong users, helping them to do more. Not only are intelligent machines being produced but LiuGong is embracing intelligent manufacturing.
A successful enterprise can sail in the smooth wind, but also can steer against the fierce tides. In its 60-year development, LiuGong has proven this over and over again.
In 1993, LiuGong began trading on the Shenzhen Stock and became the first company in Guangxi and industry that listed on the Shenzhen stock market. In early 2000s, the domestic market embraced the first momentum after National Reformation and Opening-up. LiuGong also adjusted its commercial strategy to enter more products segments and expand the business layout in Eastern China. And as a result, LiuGong was prepared to take on the globalized path which was mandated by the board of directors of LiuGong.
From the first overseas dealer in Morocco, North Africa in 2003 and first overseas subsidiary company in Australia in 2004 and first overseas manufacturing plant in India in 2007, LiuGong’s overseas development has been in the fast lane. After 15 years of development, LiuGong has established one of the most extensive sales networks globally among Chinese companies, comprised of 12 regional offices with engineering, marketing and service support, 9 regional parts deports as well as 3 overseas manufacturing plants and more than 300 dealers in over 130 countries，all working closely to ensure the rapid availability of parts and service of equipment in local markets.
From 2011, the CE industry had to meet the recession both in China and abroad. And this turned out to be big test for LiuGong’s globalization. In 2012, LiuGong successfully acquired the civil construction machinery business of HSW in Poland, becoming one of the three manufacturers in the world of a full line of bulldozers. And laid a solid foundation for LiuGong to introduce its new technology and products to high-end markets.
And LiuGong’s efforts paid off as the market rebounded, LiuGong achieved great progress in its overseas performance. In 2017, the 3rd overseas factory in Brazil came online; LiuGong moved its new European headquarters to Warsaw, Poland and a new parts distribution center was simultaneously opened at LiuGong Dressta’s Facility in Stalowa Wola; and more remarkably, LiuGong launched ‘Made in Poland’ excavators and wheel loaders to the European market. In 2018, LiuGong India celebrated its 15th Anniversary of business and 10th Anniversary of LiuGong’s India plant and announced a new investment to further enlarge the facility’s production capacity. Additionally, with the introduction of the production of H series wheel loaders, LiuGong India has become a key growth point for LiuGong’s overseas business.
Moreover, thanks to this extensive global layout, LiuGong managed to seize the opportunities brought by the national initiative of “One Belt One Road”. LiuGong covers more than 85% of the 65 key OBOR countries and regions and LiuGong has participated extensively in construction projects along “OBOR”, such as the 3rdBridge and national power plant projects in Turkey, Ashdod Port and Tel Aviv light rail construction in Israel, China-Laos and China-Thailand railway construction, the PMK expressway in Pakistan and the China-Myanmar gas pipeline project, along with many others.
“Looking forward to the future, innovation and transformation will remain vital to LiuGong.” stated LiuGong president, Mr. Huang Haibo. “LiuGong is committed to becoming a world leading construction machinery manufacturer. As a result, LiuGong’s pursuit of a continuous progress in the overseas market will never stop. We will always stand side by side with our dealers to achieve our goals.”
Source: Guangxi Liugong Machinery Co., Ltd.