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16 April 2012

LiuGong unveils plans to increase production at European factory

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Liugong Tao Deng
Tao Deng: increased production
Chinese construction equipment manufacturer LiuGong Machinery Corporation plans to increase production in Europe following the completion in February of its acquisition of Polish company HSW (Huta Stalowa Wola) and its distribution subsidiary Dressta.

Unveiling models at INTERMAT, including three Dressta bulldozers, the biggest being the TD-40E with an operating weight of 67.7tonnes, the company also introduced its next generation 922E crawler excavator, following in the tracks of the renowned 922D, with additional power, control and operating efficiencies.

Developed in China, the machine is expected to go into production at the Polish factory in May and this will be followed by the production of wheeled loaders.

This was announced by company officials including Tao Deng, president of LiuGong Europe, who said that the integration of HSW into LiuGong was going extremely well.

“In Europe our marketing strategy is to develop LiuGong as a famous brand over the next five years. We already cover much of Eastern Europe and this year we are looking to set up our networks in Western Europe in Germany, France and the Benelux countries.

“Last year we sold about 1,300 LiuGong units in Europe, not including those from HSW, and this year in Europe our target is 2,000.

“For our Polish factory we plan to introduce the LiuGong wheeled loaders and excavators and we are also developing our site in the Netherlands for sales and marketing; for service training and for logistics along with spare parts. We are setting this up in the Netherlands for distribution in Europe.

“I think Europe is a big opportunity for LiuGong. It is a very good market.”

David Beatenbough, vice president of research and development for LiuGong, who is chairman of the board of the new Polish entity, LiuGong Machinery (Poland), LiuGong’s first outright acquisition outside its domestic market, has been heavily involved in development of the new 922E, 22.4tonne, 113kW excavator.

He said the 922E is a study in power and control, and it starts with LiuGong’s Intelligent Power Control System (IPC). The automatic power boost mode increases digging force by up to 10% for ten-second intervals, giving the operator an “on demand” boost for additional break-out power.
“The real skill in the excavator business is integration of the components and this is what we have been focussing on in development of our E Series over the past few years,” he said.

In the span of 18 months, LiuGong has improved operating efficiency in its excavators by a total of 10%, while reducing fuel consumption by 18%. The new E series machine boosts operating efficiency by 5% while reducing fuel consumption by 8% over the D Series unveiled last year.

Beatenbough said: “We are going to make bigger models in Poland. With the Dressta TD-40 we have a good start and we will be introducing a 45tonne excavator. This is being developed in China and it will be sold in Europe in three to four years.

“With five years we want to be producing 3,000 machines a year. This year we will do 700-1,000 machines: last year it was less than that.”

He also said that LiuGong had an interest in a Chinese company that produces rigid dump trucks.

Hall: 6 Stand: J062 / L062