Guangxi diversified construction machinery products penetrate the international market

On September 8, Guangxi Liugong Group Co., Ltd. held a 90-unit Uzbekistan-exported machine and exported 88 sets of Cambodian machines. The total amount of exports to Uzbekistan and Cambodia was 14.1 million U.S. dollars. The single model of the excavator was added to the four models of loaders, bulldozers, rollers, and excavators.

As the “leader” of the Chinese construction machinery industry, “Liugong Brand” has been “camped out” in more than 80 countries in five continents of the world and has expanded its loader to a full range of products. At present, Liugong has developed more than 70 international distributors overseas and established marketing companies in the international regions in Australia, the United States, Brazil, and India. In the key markets of Kazakhstan, India, Russia, Australia, Morocco, South Africa, Iran, Saudi Arabia and Uzbekistan, Liugong has established a service and fittings system.

As early as the early 1970s, Liu Gong began to provide products for Chinese foreign aid projects. Through the foreign aid engineering team, Liugong products have gradually been recognized by the third world countries. In 2003, Liugong took the lead in proposing an industry internationalization strategy and was one of the first companies in the construction machinery industry to propose an internationalization strategy. Since 2003, Liugong has set up overseas offices in Morocco, Algeria, Iran, South Africa and other countries. In 2004, Liugong established its first overseas subsidiary in Australia. On August 27, 2007, Liugong India was formally established in the Indian New Delhi Industrial Zone. This is Liu Gong's second overseas establishment of a wholly-owned subsidiary following the establishment of a wholly-owned subsidiary in Australia.

In 2009, Liugong successively made appearances at international exhibitions in dozens of countries including the United States, India, Finland, Brazil, Vietnam, Iran, etc., fully demonstrating the image of Liugong’s globalized and diversified products. With the gradual realization of the diversification of Liugong products, Liugong has been strengthening the expansion of overseas markets. In 2009, despite the global market decline, Liugong’s branch business achieved growth, with Latin American branch sales increasing by 50% year-on-year, Southeast Asia market increasing by 40%, and annual sales of 30 million US dollars.

On the basis of small achievements in product exports, Liugong started the overseas manufacturing stage. In July 2008, the construction of an Indian factory started. This is Liugong’s first overseas manufacturing plant. On July 8, 2009, the Indian factory was completed and officially opened, taking the first step of Liugong International Manufacturing.

Liu Gong, vice president of the closure of the sea east before the media disclosed Liugong internationalization is divided into three phases: First, the overseas marketing stage, the second is the international manufacturing stage, and the third is the investment acquisition stage. Starting from the export of products, Liugong is currently in the second stage, marked by the commissioning of Indian companies, and the internationalization of Liugong has entered deepwater areas.

For Liugong's overseas strategy, current overseas operations account for 12% to 13% of Liugong's total sales. Wang Xiaohua, chairman of LiuGong Group, said in an interview with the media that Liugong Group should become a world-class engineering company and it must have a certain market share in overseas markets. From 2010 to 2015, he set a target of overseas market share for the company to reach 20% to 30%.