Chinese manufacturer LiuGong has adjusted its strategy to meet the changes in the construction machinery industry
Slow recovery from the global economic recession has impacted on the construction machinery industry. Intense regional, political and economic situations, low demand for resources, a decrease in emerging economies and conservative investment have led to a sharp decrease in demand for heavy machinery.
LiuGong is tackling this using its refined initiative programme, however, and the firm sa
Chinese manufacturer LiuGong has adjusted its strategy to meet the changes in the construction machinery industry
Slow recovery from the global economic recession has impacted on the construction machinery industry. Intense regional, political and economic situations, low demand for resources, a decrease in emerging economies and conservative investment have led to a sharp decrease in demand for heavy machinery.
269 LiuGong is tackling this using its refined initiative programme, however, and the firm said that product quality is key to success in the open market. By committing resources, LiuGong believe it is remaining competitive. The range includes 15 separate lines and is produced through a Six Sigma manufacturing methodology.
The company said that it is committed to technical innovation and invests in its research and development. LiuGong has more than 1000 experienced and dedicated engineers working in three R&D centres across the world. And these facilities have benefited from the opening of the Global Research and Development Centre in Liuzhou, China. This new facility will boost LiuGong’s R&D to a level comparable with leading global construction equipment manufacturers, and further develop its machines. In addition, LiuGong is looking to recruit the most talented and best-qualified engineers from around the world to develop its customer-focused products.
LiuGong is becoming an increasingly global company, establishing subsidiary offices and performing mergers and acquisitions in key regional markets. The company has built a strong sales and support network, including 24 manufacturing plants, among which three are located overseas in India, Poland and Brazil. There are 10 subsidiary companies with headquarters in India, the US, the Netherlands, Dubai, South Africa, Brazil, Poland, Russia and Hong Kong. Seven are combined with depots to ensure the fast turnaround of parts, distribution and service.
The company is also developing relationships with partners. These focus on the core technologies and major components. For example, the company has key collaborations with Cummins and ZF, allowing LiuGong to produce advanced engines and axles for its machines. The results of these collaborations are now used across LiuGong’s product lines, including the new E-Series excavators and H-Series wheel loaders.
The development of technology and its global integration have optimised LiuGong’s value chain, helping the manufacturer to remain profitable during tough times. And the company’s ancillary services have developed considerably throughout its expansion, such as financing support, after-sales service, efficient parts distribution and, when necessary, machine remanufacturing at the customers’ request. In 2014, LiuGong launched a new brand strategy for the global market. With the guidance of this strategy, LiuGong will work together with its subsidiaries and dealers.
LiuGong is confident that the new Development Centre will further establish it as a leading construction equipment firm. “For LiuGong to continue our growth path, we need facilities that enable our gifted design and engineering teams to innovate and utilise the technologies that will drive the future of our machines,” said David Beatenbough, vice president of LiuGong and project lead for the new Development Centre.
Based in Liuzhou, home to the company’s Global Headquarters, the complex is the new hub that influences LiuGong’s three other R&D facilities in India, Poland and the United Kingdom. Its comprehensive range of laboratories will develop measures to test and optimise all aspects of machine performance, such as structural design, materials science, electronic and hydraulic efficiency, cooling, vibration and noise.
The laboratories will allow accelerated endurance testing as well as a wide variety of performance testing. The new centre will be the focal point for technical training within LiuGong.
The Development Centre project has been at the forefront of LiuGong’s strategy and the firm has invested €40 million in the facility. The centre covers 110,000m² and includes an office complex, a test centre, a prototype centre, seven laboratories, and three design studios.
“By virtue of the world-class hardware that the LiuGong Global Research and Development Centre is equipped with, there will be a fundamental change for the better in how we approach R&D,” said Zeng Guang’an, chairman of LiuGong. “It will improve our experimental and research abilities, while enabling us to incorporate key technological advancements into our products.”
Beatenbough added, “From a personal point-of-view, it is the most complete facility that I have had the opportunity to work in,” continued Beatenbough. “It gives us the platform to be competitive with any construction equipment manufacturer in the world.”
Slow recovery from the global economic recession has impacted on the construction machinery industry. Intense regional, political and economic situations, low demand for resources, a decrease in emerging economies and conservative investment have led to a sharp decrease in demand for heavy machinery.
The company said that it is committed to technical innovation and invests in its research and development. LiuGong has more than 1000 experienced and dedicated engineers working in three R&D centres across the world. And these facilities have benefited from the opening of the Global Research and Development Centre in Liuzhou, China. This new facility will boost LiuGong’s R&D to a level comparable with leading global construction equipment manufacturers, and further develop its machines. In addition, LiuGong is looking to recruit the most talented and best-qualified engineers from around the world to develop its customer-focused products.
LiuGong is becoming an increasingly global company, establishing subsidiary offices and performing mergers and acquisitions in key regional markets. The company has built a strong sales and support network, including 24 manufacturing plants, among which three are located overseas in India, Poland and Brazil. There are 10 subsidiary companies with headquarters in India, the US, the Netherlands, Dubai, South Africa, Brazil, Poland, Russia and Hong Kong. Seven are combined with depots to ensure the fast turnaround of parts, distribution and service.
The company is also developing relationships with partners. These focus on the core technologies and major components. For example, the company has key collaborations with Cummins and ZF, allowing LiuGong to produce advanced engines and axles for its machines. The results of these collaborations are now used across LiuGong’s product lines, including the new E-Series excavators and H-Series wheel loaders.
The development of technology and its global integration have optimised LiuGong’s value chain, helping the manufacturer to remain profitable during tough times. And the company’s ancillary services have developed considerably throughout its expansion, such as financing support, after-sales service, efficient parts distribution and, when necessary, machine remanufacturing at the customers’ request. In 2014, LiuGong launched a new brand strategy for the global market. With the guidance of this strategy, LiuGong will work together with its subsidiaries and dealers.
LiuGong is confident that the new Development Centre will further establish it as a leading construction equipment firm. “For LiuGong to continue our growth path, we need facilities that enable our gifted design and engineering teams to innovate and utilise the technologies that will drive the future of our machines,” said David Beatenbough, vice president of LiuGong and project lead for the new Development Centre.
Based in Liuzhou, home to the company’s Global Headquarters, the complex is the new hub that influences LiuGong’s three other R&D facilities in India, Poland and the United Kingdom. Its comprehensive range of laboratories will develop measures to test and optimise all aspects of machine performance, such as structural design, materials science, electronic and hydraulic efficiency, cooling, vibration and noise.
The laboratories will allow accelerated endurance testing as well as a wide variety of performance testing. The new centre will be the focal point for technical training within LiuGong.
The Development Centre project has been at the forefront of LiuGong’s strategy and the firm has invested €40 million in the facility. The centre covers 110,000m² and includes an office complex, a test centre, a prototype centre, seven laboratories, and three design studios.
“By virtue of the world-class hardware that the LiuGong Global Research and Development Centre is equipped with, there will be a fundamental change for the better in how we approach R&D,” said Zeng Guang’an, chairman of LiuGong. “It will improve our experimental and research abilities, while enabling us to incorporate key technological advancements into our products.”
Beatenbough added, “From a personal point-of-view, it is the most complete facility that I have had the opportunity to work in,” continued Beatenbough. “It gives us the platform to be competitive with any construction equipment manufacturer in the world.”
