Skip to main content

Export intention for Lonking

Lonking plans to ramp up export levels – Mike Woof reports For Lonking, wheeled loaders form a major part of the firm’s business, although the company now has a well-diversified range. Product development has been important for the company and the third generation wheeled loaders are now coming to market. These new models feature new engines, while the firm is also introducing its second generation excavators and third generation forklift trucks. The third generation wheeled loaders will be available with e
November 26, 2012 Read time: 4 mins
Lined up ready for delivery outside the Shanghai factory, Lonking’s excavators are now being sold across the world
For Lonking, wheeled loaders form a major part of the firm’s business, although the company now has a well-diversified range.

Product development has been important for the company and the third generation wheeled loaders are now coming to market. These new models feature new engines, while the firm is also introducing its second generation excavators and third generation forklift trucks.

The third generation wheeled loaders will be available with emissions compliant engines for sale into the US and Europe and the company is launching this series at bauma China. Other additional products that will broaden the range will also be unveiled at bauma China although Lonking is reluctant to say more until the exhibition. As 6928 Lonking has its headquarters in Shanghai, the company is also planning to have an open day event that includes a full machine demonstration programme that will draw customers from the show.

The Shanghai factory is the firm’s headquarters and includes extensive manufacturing capability for equipment including road machines, skid steer loaders, excavators, forklifts and components such as axles and transmissions. The massive Shanghai facility is also Lonking’s main factory producing wheeled loaders, although the company does have a number of other production facilities and employs around 8,000. Tao Lu is general manager of overseas marketing and said, “We have four bases,” explaining that the other three factory facilities are at Henan, Jiangxi and Fujian.

Privately owned, Lonking manufactured a record number of wheeled loaders in 2011 and Tao said, “In 2011 we sold more than 44,000 wheeled loaders.”

Around 20,000 of the wheeled loaders produced in 2011 were built at the massive building F on the Shanghai site, equivalent to around 50/day. The company started production of wheeled loaders at the Shanghai site in 1999 but the facility now produces other machines including excavators, compaction machines and forklifts. The excavator market is a growing part of the firm’s business and production reached 5,000 units in 2011. Tao said, “For forklifts we are in the top three producers in China. We grew very fast as we started production of forklifts in 2006 and last year we produced 19,000.”

Lonking has a novel approach to its products too as it continues to manufacture early generation products and these are distinguished by the different colour scheme. The first generation units are sold purely into the Chinese market as low cost machines, with the second generation and third models intended as higher premium ranges. The new third generation wheeled loaders have been developed for export but will only be available in the Chinese market at first until the designs have been proven. The chassis for the new wheeled loaders remains basically the same as for the previous models, but extensive improvements have been made to the driveline, cab and kinematics for example. Similarly, third generation excavators are being developed for the export market and will be aimed at sale into the US and Europe.

Tao said that Lonking presently has a low profile outside of China compared with some of its competitors but added that this will change, “Right now we want to increase our influence in the export market, particularly Latin America, the Middle East and Africa.”

The country has some export sales success already though, with Nigeria and Saudi Arabia for example having proven strong markets for the product range so far. Mars Cal, vice director of the marketing department said that the company has a target figure of 20% for exports of its compactors. He added, “We are aggressively increasing our exports. Russia and Brazil, Argentina and Indonesia are importers.”

Other countries are also good markets for the company and Jason Lee, planning and marketing department director said, “South America and Asia are good and we are working pretty well in the Middle East.”

He explained that the company is keen to increase its presence in Africa and said, “We are looking for dealers but it is difficult to find them.”

%$Linker: 2 Asset <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 78699 0 oLinkExternal www.Lonkinggroup.com www.Lonkinggroup.com false /EasySiteWeb/GatewayLink.aspx?alId=78699 true false%>

For more information on companies in this article

Related Content

  • CCMA reports on an industry transformed (Survival of the fittest)
    November 28, 2012
    China Construction Machinery Association (CCMA) secretary general Su Zimeng presented the organisation’s industry status and forecast at Bauma China today. Mr Su reported that the Chinese domestic construction machinery market has declined substantially, and is still declining: The slide in domestic demand has been continuous, and inventory is still high, although lower than it has been. There are signs of stabilisation, and there are still challenges ahead, but CCMA believes the situation also presents opp
  • Chinese firms unveiled earthmoving innovation at BICES 2015
    January 15, 2016
    Chinese firms LiuGong, Shantui, Sunward and XCMG revealed innovative earthmoving concepts at BICES 2015 – Mike Woof writes. Of the many new machines seen at the recent BICES 2015 construction equipment exhibition in Beijing, a number of firms were notable for their innovations. LiuGong, Shantui, Sunward and XCMG all offered particular developments in earthmoving technology that stood out from the array of more conventional equipment. All of these firms also showed more standard machines, as did other rivals
  • 2-4 year-old construction equipment tops buyer ‘wish list’
    May 11, 2012
    A leading used construction equipment auctioneer firm boss believes equipment aged between 2 and 4 years is now topping buyers’ ‘wish lists’, as 1 to 2-year-old used stocks deplete. Jonnie Keys, General Manager of Euro Auctions, said that with the cost of new equipment currently up by around 20% on prices in June 2009, the used market is still strong. “Euro Auctions has repeatedly seen over 30% of all plant sold leaving the UK and Europe for projects in Australia, South Africa, South America, Central Ameri
  • Intermat’s Middle Eastern opportunity
    January 6, 2017
    More than 200 companies are preparing to take part in INTERMAT Middle East being held at the Abu Dhabi National Exhibition Centre from October 8-10 2012. Guy Woodford spoke to the ambassador of the UAE to France and senior figures in three exhibiting companies about the significance of the event and what they are looking to achieve through it.