LiuGong chairman Zeng Guang’an stresses importance of European market

LiuGong chairman Zeng Guang’an has stressed the importance of the European market to the long-term health of the global construction equipment industry. “Europe is both an opportunity and challenge to LiuGong,” said Guang’an. “LiuGong has changed quickly in Europe due to meet technology needs.
April 20, 2015 Read time: 2 mins
LiuGong chairman and president Zeng Guang’an talking about the construction equipment giant’s plans for the European market

LiuGong chairman Zeng Guang’an has stressed the importance of the European market to the long-term health of the global construction equipment industry.

“Europe is both an opportunity and challenge to 269 LiuGong,” said Guang’an. “LiuGong has changed quickly in Europe due to meet technology needs. To a certain extent, this market indicates the future of the entire industry. We have been in the European market for more than seven years and have proved that we can adapt to the latest trends thanks to our solid foundation here. Our two hubs here, together with our dealers, enables us to respond quickly to customer needs.”

Guang’an, who is also LiuGong’s president, said LiuGong Europe had achieved more than €37 million in sales revenues in 2014 – 10% of total overseas sales by the Chinese construction equipment manufacturing giant in the year. This almost matched results in 2013, he added. Globally, Guang’an said LiuGong had achieved €1.5 billion sales revenues, with 35,000 machines sold.

While LiuGong was focused on providing strong customer support through “localised business models”, Guang'an also sees the delivery of reliable products as key to success. He highlighted how R&D has been one of LiuGong’s top priorities, pointing to the earmarked June 2015 opening of the company’s new R&D centre next to LiuGong’s Liuzhou, southern China, HQ.

Of the continuing challenging global construction equipment trading climate, Guang’an said: “There has been intensive regional political and economic situations: lower demand for resources, emerging economies decreasing, and conservative investments. This has all led to a sharp decrease in demand for heavy equipment.”

Guang’an said the tough trading conditions had led to the firm restructuring and focusing on efficiencies to adapt to the “new normality of the industry”.

This has included LiuGong offering new products, such as mobile crushers, through its joint venture with Finnish crushing and screening equipment giant 6934 Metso. “I have confidence that LiuGong can be a winner,” he concluded.

For more information on companies in this article

Related Content

  • Volvo CE president says 2012 was “reasonable year” despite lack of sales growth
    February 7, 2013
    Sharply reduced global demand for construction equipment in the final three months of last year led to Volvo Construction Equipment’s (CE) full 2012 year sales growing by less than 1%, compared to sales in 2011. Volvo CE sales reached US$10.037 billion (SEK 63,558mn) in 2012, compared to $10.028 billion (SEK 63,500mn) the previous year. Operating income was down to $911.7mn (SEK 5,773mn), from $1.075 billion (SEK 6,812mn) in 2011, operating margin was 9.1% in 2012, down from 10.7% 12 months earlier, and the
    Read More
  • Volvo Construction Equipment’s Q1 2015 sales down 5% due to weak Asia sales
    January 6, 2017
    An improvement in European and North American sales could not offset continued weakness in Asia leading to Volvo Construction Equipment sales falling by 5% year-on-year in Q1 2015. Sales in China in particular were less than half what they were in the same period of 2014, the Swedish sector giant said. “We are working to adapt to lower volumes and are implementing a series of measures to reduce cost levels. However, our efforts could not fully offset the significant drop in volumes,” said Volvo Const
    Read More
  • Volvo Construction Equipment’s Q1 2015 sales down 5% due to weak Asia sales
    April 23, 2015
    An improvement in European and North American sales could not offset continued weakness in Asia leading to Volvo Construction Equipment sales falling by 5% year-on-year in Q1 2015. Sales in China in particular were less than half what they were in the same period of 2014, the Swedish sector giant said. “We are working to adapt to lower volumes and are implementing a series of measures to reduce cost levels. However, our efforts could not fully offset the significant drop in volumes,” said Volvo Const
    Read More
  • All change: get ready to rethink everything
    November 10, 2022
    How can we make our infrastructure ready for new sustainability challenges? What kind of investments are needed? And who will finance them? Tolling association Asecap has some thoughts. Geoff Hadwick reports from Lisbon
    Read More

Highlighted Content