Skip to main content

Chinese manufacturers LiuGong and XCMG in Europe

Both LiuGong and XCMG are increasing their manufacturing operations, with a focus on Europe - Guy Woodford reports The near 4,000m² site is situated about 35km from Amsterdam and is said to have convenient access to European cities via air, sea and highway. The European headquarters will serve as the Chinese firm’s sales hub, technical support base and spare parts distribution centre for existing and potential customers. “This new office will strengthen our presence as a top construction equipment manufactu
October 16, 2012 Read time: 4 mins
Wang Min, chairman of XCMG opens new factory operations

Both LiuGong and XCMG are increasing their manufacturing operations, with a focus on Europe - Guy Woodford reports

The near 4,000m² site is situated about 35km from Amsterdam and is said to have convenient access to European cities via air, sea and highway. The European headquarters will serve as the Chinese firm’s sales hub, technical support base and spare parts distribution centre for existing and potential customers.

“This new office will strengthen our presence as a top construction equipment manufacturer brand, and to service our dealers and customers in the whole European market,” said Wang Xiaohua, chairman of 6129 LiuGong Machinery Corporation. “Our staff will be able to interact more closely with our customers in Europe, and gain a deeper knowledge and understanding of the needs of each local market. Not only will this allow us to react to customers more effectively, it will also help us develop products that will better meet the local requirements”.

269 LiuGong has been selling machines in Europe for more than five years. It sells over nine product lines in the market, and all are specifically designed to meet European requirements, engine emissions regulations in particular.

The company introduced a finance programme tailored for Europe last December. It also has begun retooling its newly acquired plant in Poland to begin production of excavators. In the past year, LiuGong doubled the size of its dealer network. These efforts are said to have begun to yield results and have supported LiuGong’s success in sales. In 2011, LiuGong increased sales in the European market by nearly 200%.
“We will continue to demonstrate our commitment to meet our customers’ needs across the globe, and growing our business capabilities in European market,” added Xiaohua. “We are looking forward to strengthening our footprint here in Europe and contributing to the growth in the region.”

At the same time, LiuGong has signed an official dealership agreement with Hansan, which will provide sales and after-sales support in the Netherlands for the Liugong brand. Based in Heesch, Hansan also has branches in Staphorst, Papendrecht, and Meerssen in The Netherlands, and Aartselaar, in Belgium.

Hansan has its own repair workshops, parts warehouses and mechanics to provide support and routine maintenance to its customer base. “We are looking forward to strengthening our footprint here in the Netherlands” said Tao Deng, president of LiuGong Europe.

Meanwhile 2490 XCMG has staged a foundation laying ceremony to mark the start of work on the Chinese construction machine manufacturing giant’s new European HQ for hydraulic valve and system research and development.

Based in Krefeld, Germany, XCMG Europe’s state-of-the art €36 million plus home is set to be completed and operational by July 2013. In addition, the ambitious firm has completed a stockholding rights transfer which gives it a controlling 52% stake in renowned German concrete machinery firm 4991 Schwing.

XCMG has also staged another ceremony to mark the start of production at four new construction machine manufacturing sites in Xuzhou, China. The new European R&D facility will see XCMG staff working closely with hydraulic valve and system experts from German company FT and AMCA Holland. Both firms were acquired by XCMG in 2011. Speaking at the foundation laying ceremony in Krefeld Wang Min, president of XCMG, said: “The European strategy is of great significance in terms of the overall objectives and strategy of XCMG.

Germany and Europe are home to abundant technological resources and represent state-of-the-art research and development and manufacturing. In the future XCMG will develop more projects in Europe, carrying out system integration and construction of leading technology projects to facilitate XCMG becoming a world-class enterprise.”

The four new Xuzhou manufacturing sites, which cost more than €154.5 million (RMB 1.2 billion) to develop, will produce allterrain cranes, wheeled loaders, and concrete pumping and mixing machinery. XCMG say the plants are forecast to generate new production valued at €5.15 billion (RMB40 billion) a year. XCMG says it is the leader in the wheeled loader market in China.

For more information on companies in this article

Related Content

  • Chinese construction machine manufacturers bullish as market recovers
    April 23, 2018
    Chinese manufacturers are increasing sales of construction machines both in their home market and also for export. This is the claim from Wang Guiqing, vice president of China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME). Wang said that demand for machines in China has increased as market conditions have improved, while the impact of the Belt and Road strategy for developing infrastructure is a massive benefit for export sales. As many projects are now commencing
  • David Beatenbough talks about LiuGong’s achievements and its ambitions.
    January 6, 2017
    The year 2012 has been a milestone for Chinese construction equipment manufacturer LiuGong. In January it announced completion of the purchase of Polish company HSW (Huta Stalowa Wola) and its distribution subsidiary Dressta, LiuGong’s first outright acquisition outside its domestic market. HSW produces bulldozers and other crawler machines, while LiuGong is ranked as the largest wheel loader manufacturer in the world, and is also said to be among the world’s fastest growing CE companies.
  • David Beatenbough talks about LiuGong’s achievements and its ambitions.
    April 2, 2012
    The year 2012 has been a milestone for Chinese construction equipment manufacturer LiuGong. In January it announced completion of the purchase of Polish company HSW (Huta Stalowa Wola) and its distribution subsidiary Dressta, LiuGong’s first outright acquisition outside its domestic market. HSW produces bulldozers and other crawler machines, while LiuGong is ranked as the largest wheel loader manufacturer in the world, and is also said to be among the world’s fastest growing CE companies.
  • XCMG in acquisition mode
    January 6, 2017
    XCMG is believed to be in advanced negotiations over the purchase of major concrete machinery manufacturer Schwing as part of its ambitious plans to break into the top three companies for construction machine sales by 2015. One company source said the acquisition of Germany-based Schwing would be a “big thing” for the global construction machinery industry. “We feel they can contribute to our competitiveness in the concrete machinery sector. Our lower manufacturing costs and their high level technology make