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28 November 2018

LiuGong embraces Industry 4.0

First publishedon www.WorldHighways.com
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LiuGong chairman Zeng Guang’an says that the firm is fully embracing Industry 4.0 technology. Coupled with ongoing machine development, an expanding global sales and manufacturing network and long-established strong relationships with customers and suppliers, this is enabling the Chinese construction equipment giant to target RMB 50 billion (US$7.18bn) operating revenue by 2025.

Chairman Zeng outlined the impressive scale of LiuGong’s future ambitions during an impassioned speech in front of an audience of 5,000 attendees, including customers, employees - past and present, dealers and the world’s trade media on the first day of a two-day special 60th anniversary year event at the company’s global HQ in Liuzhou, southern China.

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LiuGong chairman Zeng Guang'an says that the firm is targeting RMB 50 billion (US$5.755 billion) operating revenue by 2025
LiuGong used the landmark celebration to unveil six new machines, including the 886H wheeled loader equipped with the firm’s first intelligent loader shovelling system. The global market equipment manufacturer also marked the production of the company’s 400,000th wheeled loader.

“We have stepped forward on the path of global development and built ourselves from a remote enterprise to an international enterprise,” said Zeng. “We are pushing ahead with our overseas operations and joint venture alliances. Our target is to achieve RMB 50 billion by 2025 (compared with RMB 11.5 billion in 2017).

“The world today is experiencing a fourth industrial revolution. Our strategy us to bring talents from across the world and develop our manufacturing intelligence capabilities.”

Zeng said LiuGong owed its existence to its customers and close cooperation with its suppliers, adding, “We will work to write more shared stories of success. With passion and determination, LiuGong is moving towards its next 60 years.”

Monday’s programme in Liuzhou also included a press conference involving Zeng Guang'an and other key senior company executives, a tribute to the company’s founders, a number of whom were present, a product history and achievement exhibition, and a 60th anniversary gala dinner. The second day of the 60th anniversary year event was dedicated to a global dealer conference.

During the press conference, Zeng spoke of how India had the biggest growth potential for LiuGong, given prime minister Narendra Modi’s huge transport infrastructure investment programme in a country with a population of 1.2 billion, second only to China but tipped to become the world’s most populated country in the coming years.

Zeng also spoke of the success of LiuGong’s now four-year-old Chinese market joint venture with Metso, the global crusher and screener equipment manufacturer. From next year, all Metso’s product range will be manufactured in China, significantly cutting machine production and shipping costs. “It is currently a niche market business for us, but the joint venture has great potential.”

LiuGong’s chairman said the original equipment manufacturer’s (OEM’s) joint venture with Metso had given its domestic customers access to a complete construction and quarrying equipment range.

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LiuGong's has staged a major two-day 60th anniversary year event at the company's Liuzhou HQ – with customers, dealers, current and past employees, and the world's trade media among the 5,000 attendees
Earlier in the day, Zeng had also stressed how LiuGong’s growing global market reach has allowed it to seize the opportunities brought by the Chinese government’s ‘One Belt One Road’ (OBOR) programme. LiuGong covers more than 85% of the 65 key OBOR countries and regions and LiuGong has participated extensively in construction projects along ‘OBOR’, such as the 3rd Bridge and national power plant projects in Turkey, Ashdod Port and Tel Aviv light rail construction in Israel, China-Laos and China-Thailand railway construction, the PMK expressway in Pakistan and the China-Myanmar gas pipeline project, along with many others.

On Monday, at LiuGong HQ, the manufacturer unveiled the new 886H wheeled loader with intelligent loading shovel, the 90tonne class 990F crawler excavator, the B170DL crawler dozer, the 4180D motor grader and the TC800C5 crane.

LiuGong manufactured China’s first modernised wheeled loader in 1966 and in 1976 produced its first articulated and oversized wheeled loaders. In 1993, it became China’s first publicly traded construction equipment company.

Employing around 11,000 staff globally, LiuGong has 24 manufacturing facilities and around 2,650 sales outlets and 380 dealers. Supporting its comprehensive dealer network are 10 regional offices with engineering, marketing, and service support, coupled with 10 parts depots located worldwide. LiuGong has subsidiary companies based in Johannesburg, South Africa; Sydney, Australia; Belo Horizonte, Brazil; Dubai; Europe; New Delhi, India; Poland; Singapore; Moscow, Russia; and Houston, United States.

LiuGong also has a highly successful joint venture with Cummins, Guangxi Cummins Industrial Power, which includes a mid-range engine manufacturing facility in Liuzhou. Liuzhou ZF Machinery is a long-established joint venture between LiuGong and ZF Friedrichshafen of Germany which manufactures driveline and parts of driveline for construction machinery.

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