The History of LiuGong, 55 Years of Innovation and Exploration

Beijing, China – October 15, 2013– The Chinese construction machinery industry started from nothing with products evolved from adoption to independent innovation, telling a story from “Made in China” to “Created in China”. During the leap-forward development of construction equipment industry, a great number of local enterprises emerged with international influence and competitiveness. LiuGong is an outstanding representative and industry leader.

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From the launch of China’s first loader Z435 to leader of the loader industry, from one workshop to a large group with 24 global manufacturing facilities, 9 global offices and full range of construction equipment product lines, from a small plant located in a border area of the southwest region to a leading construction equipment maker in China and to an international brand from China, LiuGong has gone through a productive 55 years.

This year, LiuGong celebrates its 55th anniversary. The development of this revolutionary company is a story of vision, willingness to embrace change, and a story that a China-leading construction equipment maker goes international.  

The Historical First Loader

It is well-known that LiuGong is the leader of China’s loader industry. However, it is not easy to be a leader. You have to put in more time, more sweat, more labor, more materials and more investment.

On October 1, 1966, LiuGong launched its first wheel loader Z435, which won national certification in 1968, the first of its kind. On this basis, LiuGong accelerated the development and production of loaders. On July 1, 1971, LiuGong launched China’s first articulated wheel loader Z450. LiuGong took the national assignment of developing then the largest wheel loader ZL90 and underground loader ZL50 in 1975. ZL50 later became the prototype of China’s ZL-series loaders.

Team up with Caterpillar

In 1979, LiuGong and Caterpillar formed a partnership which lasted over 20 years. Especially during the technology introduction called “8-year effort”, LiuGong dispatched over 10 teams of over 100 members to Caterpillar to learn advanced production technologies, management, sales and R&D skills. The partnership was a major turning point of LiuGong’s history. The mature R&D and operation philosophy from a multinational company influenced LiuGong’s every aspect of operation and the influence continues today.

Business Transformation and Rising

In May 1992, LiuGong turned into a stock company by building modern corporate system. This bold action was full of challenges and opportunities. In March 1993, Guangxi LiuGong Machinery Corporation was incorporated.

On December 18, 1993, LiuGong began trading on the Shenzhen Stock Exchange.15 minutes later, its stock price increased from 18 yuan to 20.35 yuan. The public trading is a milestone of LiuGong and marks the building of modern corporate system at LiuGong. It is also a milestone in China’s construction equipment industry since LiuGong was the first Chinese construction equipment maker to go public.

Continue to Grow and Expand

Through capital operation, LiuGong has completed its layout in and outside China. A vigorous and confident LiuGong is presenting itself. After 2000, through independent R&D and M&A, LiuGong started to develop diversified products. Previously, the company focused on loaders, and then other businesses took up 45% in the total, and Liu Gong’s strategic businesses rose rapidly. Through M&A, LiuGong successfully set foot in the fields of concrete machinery, piling machinery, mining machinery, engines and parts. Moreover, it acquired Polish company HSW’s civil engineering machinery division, taking a step forward on the way to becoming a world company.

Accelerating Internationalization

Ten years ago, LiuGong launched its internationalization strategy as one of the first among Chinese construction equipment makers. Starting from nothing and growing into a global company with over 400 resellers in 130 countries, 7 overseas part center and 2 overseas manufacturing facilities. LiuGong delivers superior products and fast services to every corner of the world. In 2012, LiuGong’s international revenue accounted for nearly 30% of total revenue and reached RMB 3.663 billion, up by 28.43% year on year. LiuGong is among the top exporters of both loaders and excavators.

LiuGong’s internationalization process includes three procedures: overseas marketing, overseas manufacturing and acquisitions. In 2004, with the establishment of its subsidiary in Australia, LiuGong started building its international marketing system. Since 2008, LiuGong established its division and the first plant in India. In July 2007, LiuGong India manufacturing base went into operation and delivered the first product which marked LiuGong’s transition from overseas marketing to overseas manufacturing to meet local demands. The acquisition of HSW Dressta in Poland is a milestone of LiuGong’s investment and acquisition strategy.

During its rise, LiuGong sticks to the core philosophy of “cooperation creating value”, which is well reflected by the world-class partnership with Cummins and ZF. LiuGong is now co-manufacturing transmissions and axle drives with ZF and co-developing engines with Cummins. These partnerships greatly drive LiuGong’s internationalization process.

Build a Global Construction Equipment Company

55 years’ hard work, 55 years’ innovation and exploration, 55 years’ journey despite wind and rain, and 55 years’ remarkable success. Now, after 55 fruitful years, LiuGong is standing at a new starting point. Looking into the future, we still have a long way to go. The dream of becoming a world-class construction machinery maker is stimulating the new-generation of people at LiuGong to work hard and bring their talents into play on a broad global arena.

“Building a time - honored enterprise” is the historical responsibility and glorious mission that the times endow us. We have determination and confidence to cross the new starting point, meet new challenges, and make new glorious achievements.