Guangxi Liugong Group eyes worldwide growth

Guangxi Liugong Group, one of the nation's largest industrial engineering companies, has actively integrated its expansion plans into the Belt and Road Initiative and made internationalization a key orientation in its development, the company's executives said.

The executives said the initiative has brought Chinese enterprises many development opportunities. Countries and regions involved in the initiative have a big demand for infrastructure construction, which represents a huge opportunity for engineering machinery companies, they said.

Guangxi Liugong boasts globally leading product lines, involving 13 categories such as excavation, shovel, lifting, industrial vehicles, road construction and maintenance and concrete machinery. It can provide good solutions, product portfolio support and after-sales support service for transportation and infrastructure construction projects.

The company has 120 distributors, six parts centers and six training centers in countries and regions involved in the initiative. Its products include loading machines, excavators and road rollers, which are manufactured in China, India, Poland and Brazil. Its income from the countries and regions involved in the initiative accounted for 65 percent of its overseas income last year.

Guangxi Liugong plans to consolidate the localization operation network in key countries by setting up businesses for direct sales in the countries and improving regional business centers in India. Executives are also considering business mode innovation, exploring financing and cross-border leasing.

A manager speaks during a skill competition at Liugong Group. [Photo by Liao Qinggan/Provided to chinadaily.com.cn]

Internationalization has long been at the core of Guangxi Liugong's operation. Last year, the company seized the opportunity created by the recovery of the international engineering machinery market and its overseas sales income saw a year-on-year rise of 30 percent.

It now owns nine marketing subsidiaries, nine regional parts centers and more than 200 distributors overseas, covering 100-plus countries and regions.

Guangxi Liugong's branches in India fully used local manufacturing capabilities and an advantaged product mix in 2018, increasing its sales volume there by 50 percent year-on-year. Its factories in Poland have gradually become the main supply centers for the European market.

Its Brazilian plants further increased production of loading machines and excavators to support sales in that local market. The 835H FINAME loader has passed reliability verification and begun small-batch production.