LiuGong Advances Along Path of China’s Proposed ’Belt and Road’ Initiative

Wed December 09, 2015 - National Edition

The China-proposed “Belt and Road” initiatives cover Asia, Africa and Europe, and each country along the routes of the “Silk Road Economic Belt” and “21st Century Maritime Silk Road.”
The China-proposed “Belt and Road” initiatives cover Asia, Africa and Europe, and each country along the routes of the “Silk Road Economic Belt” and “21st Century Maritime Silk Road.”

The China-proposed “Belt and Road” initiatives cover Asia, Africa and Europe, and each country along the routes of the “Silk Road Economic Belt” and “21st Century Maritime Silk Road.” The initiatives seek to promote win-win cooperation among participating nations by breaking any infrastructure bottlenecks. This is achieved by boosting the efficiency of resource allocation and through the development of market integration. The initiatives are presenting opportunities to ambitious CE manufacturers — LiuGong, a premier Chinese construction equipment manufacturer, is prepared to take advantage.

LiuGong, 12-Year’s Path to Globalization

LiuGong started its globalization path in 2003, and since then it has never stopped trying to realize its vision of becoming a world-class company in the construction machinery industry. After 12 years’ effort, LiuGong has now established a strong global layout. The company supports its global business with broad subsidiary offices, manufacturing plants and R&D centers across five continents. It also owns the strongest dealer network of all China’s construction machinery manufacturers, which includes more than 380 dealers in over 130 countries, and extends to over 2,650 sales outlets around the world. Its ten regional offices, in conjunction with eight overseas parts distribution centers, ensure the highest standard of service to LiuGong customers, with rapid replacement of parts and the servicing of equipment in any part of the world, according to the company.

As of now, LiuGong’s overseas business has accounted for more than 35 percent of the total revenue, with overseas employees making up 20 percent of the staff, and overseas assets accounting for nearly 10 percent of total assets. LiuGong has become one of the most internationalized companies in China, setting an undisputed example for Chinese construction machinery companies aspiring to go global.

“Judging from our current status and so far satisfying achievements, LiuGong’s globalization strategy has been ahead of the era and all our efforts are paying off,” said Zeng Guang’an, chairman of LiuGong Group. “Despite the domestic market’s tumble, LiuGong still performs well in sales revenue and profits due to our overseas business. Meanwhile, the overseas markets have played a significant role in the improvement of product technologies, product quality and LiuGong management systems.”

LiuGong Establishes Roots in the B&R Countries

As a pioneer of globalization in the industry, LiuGong has coordinated a layout relating to “the B&R countries”. In the past 10 years, LiuGong has set up its business network in 62 of the 65 B&R countries, among which LiuGong has established a dealer network, including service and parts distribution centers in five Central Asia countries. In 2012, by acquiring the civil engineering machinery division of the Huta Stalowa Wola and Dressta brand in Poland, LiuGong expanded its dealer network and established a perfect base at the start of the Silk Road Economic Belt construction. From now on, all LiuGong customers along the Silk Road Economic Belt will enjoy convenient and rapid services while using LiuGong products.

Tough World. Tough Equipment

The Silk Road Economic Belt covers a vast territory of geographical diversity, such as plateaus, deserts and frozen earth. On top of this, the environments are made more demanding due to extremely hot summers and freezing winters, which inevitably result in difficulties in the construction of infrastructure and place high demands on the heavy equipment used. As a world’s leading manufacturer of a full line of extreme duty, intuitive machines, LiuGong can provide total solutions for infrastructure constructions, the company said.

Basic earthwork, road or railway projects, airport construction, tunnels and bridges work, and other tasks relating to transport infrastructure — no matter the challenges of construction or maintenance, customers can always depend on LiuGong machines.

LiuGong possesses a deep understanding of the extreme conditions since its machines are forged in a country of vast geographical diversity, where harsh environments are the norm and easy physical or economic conditions are a rarity. LiuGong machines can be reliably operated anywhere and are smartly designed to allow for maintenance in the most isolated locations — making them perfect for meeting the demands of “the Belt and Road” construction, the company said.

“The Belt and Road initiative” brings opportunities for companies as well as challenges for them to exert their own advantages, establish globalization strategy, and realize global operation. For LiuGong, the globalization strategy means not just to build an operations management system accepted globally, but also to overcome the national and cultural obstacles that result from this integration. LiuGong has long held a strong culture of localization, openness and inclusiveness, all of which have gained the company impressive high-level talents and advanced experiences. LiuGong will continue this tradition and provide better services for customers in the B&R countries to create a sustainable business model of cooperation and “win-win”.