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LiuGong’s Zeng Guang’an Spoke on the Development of the Manufacturing Industry at China’s National People’s Congress

First publishedin World Highways
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Zeng Guang'an, NPC deputy for Guangxi Zhuang Autonomous Region and chairman of Guangxi Liugong Group
The first session of the 13th National People's Congress (NPC) opened in the Great Hall of the People in Beijing recently

Chinese premier Li Keqiang delivered the annual report on the work of the government at the opening ceremony. Zeng Guang’an, NPC deputy for Guangxi Zhuang Autonomous Region and chairman of Guangxi Liugong Group, attended the conference. Zeng Guang’an listened to the Government Report and participated in the panel discussion of Guangxi Zhuang Autonomous Region. He reported to premier Li Keqiang on the manufacturing industry in Guangxi and proposed to build a sustainable and globally competitive manufacturing industry for Guangxi and China.

Premier Li Keqiang commented that Guangxi had advantages as the only coastal province in western China and an important pivot in the “21st Century Maritime Silk Road” and ASEAN area. He pointed out that Guangxi had great potential for development as long as it adhered to the opening-up policy and seized the opportunities along with the "Belt and Road" initiative; insisting on the innovation-driven developing model, "Internet +" and "China Manufacturing 2025" strategies; and continuously to improve products’ quality, management and operation capabilities and technology innovation.

Zeng Guang’an also shared with the media his perspectives on industry development; transition from old to new economic engines; the globalisation of Chinese enterprises and the development and competitiveness of Guangxi manufacturing industry. “Even in our toughest time, we insisted on investing in R&D.,” Zeng Guang’an stated. LiuGong maintained steady growth in the past few years of recession and the transformation of the Chinese economy, and Zeng Guang’an attributed it to LiuGong’s innovation-driven developing model. Through organisational reform and innovation in technology, LiuGong increased operating efficiency and also made breakthroughs in both products and technology, among which, the vertical lift wheeled loader, VL80A, is listed in the National Innovation List as a major achievement.

At the same time, LiuGong boosted its global presence and adjusted its current layout to be more in conjunction with the national “B&R” initiative. As of the end of 2017, equipment production and sales of LiuGong India exceeded 1,000 units/year for the first time in 10 years’ operation and LiuGong Poland launched new production lines in Stalowa Wola, Poland, augmenting Dressta’s dozer operations with the manufacture of LiuGong Tier IV Final wheeled loaders and excavators to supply products and local service throughout Europe.

Regarding the development of Guangxi, Zeng Guang’an thinks human talent has been the bottleneck for Guangxi manufacturing and other new industrial companies. Taking LiuGong’s development as an example, he proposed that business organisations should introduce more international talent including technicians, entrepreneurs and experts. These are needed in key areas with the support and guidance from the Chinese government. Zeng also stressed that manufacturing, marketing and branding are also key elements for the shifting process. “Besides the R&D innovations, Guangxi enterprises also need the innovation and internationalised insight at a corporation’s management and operation levels to complete the transformation,” he said.

In 2017, the average increase of sales of construction machinery in the domestic market was around 40%. The achievement has been largely due to the government’s efforts of ensuring the steady growth and structural reforms. Other factors have included the need to use new machines with lower emissions, as well as the gradual reduction in the numbers of secondhand machines on the market. “We have seen great privileges in the Government Work Report for our industry in 2018, such as tax reduction for real economic corporations, business environment’s improvement and financial resources’ optimisation, the Rural Revitalisation Strategy, new investment in infrastructure construction, the implementation of “China Manufacturing 2025” and intelligent manufacturing as well as the launch of new projects along “OBOR” regions. All will lead to a better future for the CE industry,” Zeng concluded.

2018 is the 40th Anniversary of the Chinese Reform and Opening-up and the 60th Anniversary of the establishment of Guangxi Zhuang Autonomous Region. Meanwhile, it is the 60th Anniversary of LiuGong. “From Guangxi to China, LiuGong took 40 years; and from China to the world, LiuGong took 15 years.” Zeng addressed, “In 2018, we are to challenge the 20 billion yuan in the group’s sales and maintain our global growth. Hopefully, till 2020, our overseas revenue can account for 40% of the company's total revenue."

“It is a great honour to be elected deputy to the 13th NPC for Guangxi and proposed on behalf of the manufacturing industry.” Zeng Guang’an commented.

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