Chinese manufacturers LiuGong and XCMG in Europe
First publishedin World Highways
L-R: David Beatenbough, vice president of research and development at LiuGong Machine Corporation, with Tao Deng, president of LiuGong Europe, at the recent Intermat exhibition in paris, France
Both LiuGong and XCMG are increasing their manufacturing operations, with a focus on Europe - Guy Woodford reports
The near 4,000m² site is situated about 35km from Amsterdam and is said to have convenient access to European cities via air, sea and highway. The European headquarters will serve as the Chinese firm’s sales hub, technical support base and spare parts distribution centre for existing and potential customers.
“This new office will strengthen our presence as a top construction equipment manufacturer brand, and to service our dealers and customers in the whole European market,” said Wang Xiaohua, chairman of LiuGong Machinery Corporation
. “Our staff will be able to interact more closely with our customers in Europe, and gain a deeper knowledge and understanding of the needs of each local market. Not only will this allow us to react to customers more effectively, it will also help us develop products that will better meet the local requirements”. LiuGong
has been selling machines in Europe for more than five years. It sells over nine product lines in the market, and all are specifically designed to meet European requirements, engine emissions regulations in particular.
The company introduced a finance programme tailored for Europe last December. It also has begun retooling its newly acquired plant in Poland to begin production of excavators. In the past year, LiuGong doubled the size of its dealer network. These efforts are said to have begun to yield results and have supported LiuGong’s success in sales. In 2011, LiuGong increased sales in the European market by nearly 200%.
Wang Min, chairman of XCMG opens new factory operations
“We will continue to demonstrate our commitment to meet our customers’ needs across the globe, and growing our business capabilities in European market,” added Xiaohua. “We are looking forward to strengthening our footprint here in Europe and contributing to the growth in the region.”
At the same time, LiuGong has signed an official dealership agreement with Hansan, which will provide sales and after-sales support in the Netherlands for the Liugong brand. Based in Heesch, Hansan also has branches in Staphorst, Papendrecht, and Meerssen in The Netherlands, and Aartselaar, in Belgium.
Hansan has its own repair workshops, parts warehouses and mechanics to provide support and routine maintenance to its customer base. “We are looking forward to strengthening our footprint here in the Netherlands” said Tao Deng, president of LiuGong Europe.
Meanwhile XCMG has staged a foundation laying ceremony to mark the start of work on the Chinese construction machine manufacturing giant’s new European HQ for hydraulic valve and system research and development.
Based in Krefeld, Germany, XCMG Europe’s state-of-the art €36 million plus home is set to be completed and operational by July 2013. In addition, the ambitious firm has completed a stockholding rights transfer which gives it a controlling 52% stake in renowned German concrete machinery firm Schwing.
XCMG has also staged another ceremony to mark the start of production at four new construction machine manufacturing sites in Xuzhou, China. The new European R&D facility will see XCMG staff working closely with hydraulic valve and system experts from German company FT and AMCA Holland. Both firms were acquired by XCMG in 2011. Speaking at the foundation laying ceremony in Krefeld Wang Min, president of XCMG, said: “The European strategy is of great significance in terms of the overall objectives and strategy of XCMG.
Germany and Europe are home to abundant technological resources and represent state-of-the-art research and development and manufacturing. In the future XCMG will develop more projects in Europe, carrying out system integration and construction of leading technology projects to facilitate XCMG becoming a world-class enterprise.”
The four new Xuzhou manufacturing sites, which cost more than €154.5 million (RMB 1.2 billion) to develop, will produce allterrain cranes, wheeled loaders, and concrete pumping and mixing machinery. XCMG say the plants are forecast to generate new production valued at €5.15 billion (RMB40 billion) a year. XCMG says it is the leader in the wheeled loader market in China.