Subsidiaries Mark Further Expansion for LiuGong

December 14, 2010

Chinese construction equipment manufacturer LiuGong Machinery is opening three new subsidiary companies with office headquarters in Singapore, Johannesburg and Dubai.

Each will house the sales and marketing functions, engineering, logistics, importing, accounting, dealer support and dealer training, along with executive management, and will include the start-up of sophisticated parts depots where LiuGong will import and keep inventory of machines and spare parts. The depots support shipments of spare parts to any portion of each region within 48 hours.

The company says the new subsidiaries are a continuation of the steady expansion LiuGong has undertaken for the past five years. It recently opened a European subsidiary office in the Dutch capital Amsterdam.

“LiuGong opens subsidiary offices in markets it plans to aggressively pursue. These three newest subsidiaries follow a successful strategy that has enabled LiuGong to become among the top 25 largest heavy equipment manufacturers in the world,” says the company.

It is already active in Indonesia, South Africa and the Middle East, with dealers in each, but the expansion allows the company to even better reach to customers. Each office debut will be followed by heavy recruitment for additional well-capitalised, high quality dealers.
LiuGong Asia Pacific, a ¥6.6 million, (US$1 million) investment for the company, opens its doors in coming weeks, and has 4,000m² of office space. Mr. Li Dongchun is general manager and will lead a team of ten Chinese and Malaysian professionals.

LiuGong Machinery South Africa is expected to become fully operational in early 2011, and will include 4,500m² of office space for support personnel and the parts depot. It represents a ¥31 million ($4.7 million) investment, with Mr. Zhu Xionbing being named general manager. He will lead a team of ten Chinese and South African professionals. The headquarters will serve African countries south of the Sahara Desert.

LiuGong Machinery Middle East FZE is also expected to be fully operational in early 2011, and it incorporates 1,000m² of office space and represents a ¥23 million ($3.5 million) investment for the company. Mr. Liang Yongjie has been named general manager and will lead a team of 20 Chinese and Arab professionals.

“LiuGong’s approach to growth is tied to a strategy of carefully expanding its global footprint. In each country it enters, LiuGong first carefully courts well-capitalised, experienced and dedicated dealers.

"Customers have access to more than 881 outlets carrying LiuGong machines supported by worldwide network of more than 115 LiuGong dealers with locations in nearly every country. The LiuGong subsidiary companies are strategically located to provide expert support close to important markets,” says LiuGong.

The three new offices join other global subsidiaries, including LiuGong USA in Houston, Texas; LiuGong Latin America in Belo Horizonte, Brazil; LiuGong Australia in New South Wales; LiuGong India in New Delhi, India; LiuGong Russia in Moscow, and LiuGong Europe.