Saga of Success LiuGong’s Overseas Business to Account for 40% of the Total Revenue by 2020

Zeng Guangan
Mr. Zeng Guang'an
Chairman, Liugong Group and Guangxi LiuGong Machinery Co., Ltd.
Liugong is one of the largest manufacturers from China of construction equipment with a widespread presence in the global markets including India. The internationalisation and deep marketing network is an evidence of the fact that currently LiuGong is distributing its products to over 130 developing and developed countries.

Under the stewardship of Mr. Zeng Guang'an, Chairman of the group, who has driven the success of internationalisation, the company is currently, focusing on the strategic development of LiuGong and the industry within the Chinese and the global markets.

With its internationalisation strategy started in 2003, LiuGong has become an example for other enterprises in the Chinese CE industry, demonstrating its advantages in both overseas sale volume and the ratio of export products compared to its competitors. With such sustained and stable status and acceleration, and with the further deepening of overseas deployment, Zeng predicted, "in 2020, international business will account for 40% of LiuGong's revenue."

Liugong Construction Equipment

In the early years, this strategy drew interest from a number of overseas tycoons. Zeng recalls one example of 2005 when the president of a world-leading European corporation rang him up with the intention of acquiring LiuGong. However, after this communication, and to the surprise of many, they gave up on this intention: "LiuGong has grand visions and ambitious goals, and we were determined to become a world-class corporation by ourselves, rather than to be acquired, "explained Zeng.

The rejection of acquisitions originates largely from the personality and character of Zeng himself. Without concealing his ambitions, he hopes LiuGong and China's CE manufacturers can be "immortal" in the industry, rather than regional representatives of a global industry that depend on the markets of developing countries.

The company's overseas sales volume accounts for one-third of LiuGong's total revenue, and will undoubtedly contribute greater profits in the future. In fact, the overseas markets for some units – such as wheel loaders and cranes – have displayed greater development than in the domestic market.

These successes are founded upon a deep understanding of and precise judgements in the global market. LiuGong's most senior members have tirelessly gathered information from across the world to help inform its strategical moves. It is a strategy that Zeng feels will become the new normal for the future development of Chinese corporations, but one that requires a long-term view. Zeng knows that "the effect of LiuGong's international development is not likely to burst in a short-term. But once it bursts, it will bring us an unprecedented success."

Liugong Earthmoving Equipment
One example would be LiuGong's experience in India. Before the Indian manufacturing base went into operation, LiuGong conducted a two-year in-depth feasibility study, with Madhya Pradesh eventually chosen for its location. In July 2009, the Indian Base went into operation after one year's preparation and construction, making LiuGong the first Chinese construction corporation to set up a plant in India. At the opening ceremony, the Chief Minister of Madhya Pradesh asked Zeng why he chose to set up the plant in India. Zeng, without concealing his thoughts said: "India is a market that possesses tremendous demand potentials and scales in the global context. In India, LiuGong is the leading force in the 5t-plus wheel loader market with a market share of over 60%; 7 out of the top 10 contractors in India are LiuGong's clients. In the future, India will become one of the backbones for LiuGong's global development."

LiuGong's business in the advanced markets of Europe has developed too. Despite the Chinese market following a downward trend in 2012, LiuGong invested more than RMB 300 million to acquire HSW (Huta Stalowa Wola) Dressta in Poland. More than a year later, LiuGong Poland acquired all assets and technologies of ZZN Transmission Plant, a world-class drive system manufacturer and the core supplier of US General Electric Company.

Poland, where HSW Dressta is based, is the gateway for LiuGong to succeed in Western Europe, where demand is becoming diversified and Chinese products are growing in acceptability and recognition. In addition, Poland is extremely cost-effective for Chinese corporations entering Europe. "With the synergistic effect from these aspects, the European business through HSW will bring LiuGong major breakthroughs in the European and American markets," said Zeng.

Alongside the achievements in Poland, LiuGong has constantly enhanced its presence in Europe through other channels like participating in exhibition, and by collaborating with dealers. LiuGong's most recent major global action was to establish a manufacturing plant in Brazil in March this year, in an effort to penetrate the burgeoning South American market.

After more than ten years of travelling around the world, Zeng is now in his forties, but is as enthusiastic as ever. Morocco, the first destination of LiuGong "going overseas", is regarded by him as the blessed place for internationalisation."

LiuGong's first local agent in Morocco and the Chairman of the biggest contractor who is now in his nineties said to Zeng, "to "hold steadfast to your conviction and go for it." On this, Zeng said: "If other people have confidence in us, we must trust ourselves and make every possible effort to do our best." It is this notion that continues to drive LiuGong's development into one of the world's leading manufacturers of construction equipment.

NBM&CW October 2015

Click Here
To Know More / Contact The Manufacturer
Please fill in your details, we will contact you as soon as possible
Choose Title from the listPlease let us know your name.
Please let us know your Designation.
Invalid Input
Please let us know your email address.
Please let us know your City.
Please let us know your Contact Number.
Please brief your query.
Our other value-added services:

To receive updates through e-mail on Products, New Technologies & Equipment, please select the Product Category(s) you are interested in and click 'Submit'. This will help you save time plus you will get the best price quotations from many manufacturers, which you can then evaluate and negotiate.

Equipment & Machinery
Invalid Input
Building Products
Invalid Input

Backhoe Loader Manufacturers Optimistic of Market Rebounding

With the construction market reviving, manufacturers are gearing up to offer more value to the end-users with tech-enabled, robust machines that come with numerous attachments for specific applications Read More ...

L&T delivers Komatsu’s first 300-ton Electrical Shovel in India to SECL-Gevra

L&T Construction & Mining Machinery has achieved a milestone with the erection and commissioning of Komatsu PC3000-6 Electrical Shovel, their first 300-ton electrical shovel supplied at Gevra, India’s largest mines Read More ...

Wheel Loaders Manufacturers Prepared to Counter Slowdown

With sales of wheel loaders slowing down, manufacturers are beginning to focus on enhancing their product service and support, and engaging with customers more proactively. NBM&CW reports. Read More ...

Mahindra showcases 5 new construction equipment products

Mahindra Construction Equipment (MCE) launched RoadMaster G90 Comfort+, a new variant of the G90 RoadMaster Motor Grader and displayed some new product concepts such as EarthMaster SX 79 with DrillX, RoadMaster G75 Smart Read More ...

Hyundai CE India launches 5 new Excavators and Forklift range

Hyundai Construction Equipment (HCE) India launched five new excavators - R30Z-9AK, 85A SMART, 130 SMART, HX220L and HX360L, and a range of Li-Ion powered forklifts. The HX360L, targeted at the mining and quarrying segment including Read More ...

B900 Backhoe Loader from Doosan Bobcat unveiled

The B900 Backhoe Loader from Doosan Bobcat was unveiled by HW Park, President - Asia, LA and Oceania on 10th December in the inaugral day of EXCON 2019. The product gives superior performance with the finest digging depth Read More ...

Two new launches by Tata Hitachi

Tata Hitachi launched the EX215LC Quarry - a machine engineered to perform in tough quarry applications. It has a reinforced heavy-duty boom, heavy duty arm, strengthened main frame and track frame, heavy duty track link and chain Read More ...

CASE India launches CX220C Crawler Excavator

CASE Construction Equipment, a brand of CNH Industrial, unveiled the long-awaited globally renowned Crawler Excavator CX220C, which will be manufactured at the brand’s plant in Pithampur and will be available in the Indian Read More ...

JCB India launches all new ecoXpert Backhoe Loader, NXT series, Quarry Master range of Excavators, and side engine Telehandlers

India's leading manufacturer of Earthmoving and Construction Equipment, JCB India, introduced a wide range of new, smart, technology-driven machines with a focus on Digitisation and Innovation, and leveraged the integration Read More ...

Bobcat B900 Backhoe Loader from Doosan Bonbcat

Bobcat B900 Backhoe Loader from Doosan Bonbcat Global Compact Construction Equipment Leader, Doosan Bobcat has introduced the Bobcat Brand B900 Backhoe Loader in India. Bobcat’s B900 Backhoe Loader demonstrates superior performance with Best-in-class Digging Depth, Higher Breakout Read More ...

Wheel Loaders - Maximizing Loading Efficiency

For speedy and economical execution of loading duties, proper choice of equipment is of primary importance. When selecting the most efficient wheel loader for the job at hand, the key is to meet the desired production targets with Read More ...

DOOSAN BOBCAT Enters India’s Backhoe Market

Compared to 2018, the Backhoe Loader market is seeing a slowdown in demand. The Indian economy is on a slow growth path and this has impacted the CE industry at large. The Backhoe Loader market is expected to be down by 30-35% Read More ...

DOOSAN BOBCAT sets up its first Indian facility to manufacture B900 Backhoe loader

Doosan Bobcat India Plant Inauguration – Ribbon Cutting Ceremony by [Tenth from Left] Scott Park, Global President and CEO, Doosan Bobcat, [Fifth from Left] HW Park ( President, Doosan Bobcat Asia, Latin America and Oceania), Doosan Bobcat Read More ...

Schwing Stetter India: Enters New Business Avenue

Schwing Stetter India, which has been supplementing its concrete solutions with wheel loaders, tower cranes and concrete slip form pavers, is now looking to expand in the non-concreting business with the launch of XCMG excavators, which will be Read More ...

BEML Bl30-1 Wheel Loader for Heavy-Duty Applications

The BEML BL30-1 Wheel Loader is powered by Ashok Leyland low emission BS-III compliant H series CRDI engine, which delivers maximum power with optimum combustion of fuel and has fast throttle response to match the performance of Read More ...

Doosan Bobcat - Mini Machines, Mega Benefits

The Real Estate is one of the prime sectors that drives the economy and contributes hugely to the overall GDP of the country. Both the government and the private sector are equally involved in driving growth of the real estate sector Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week