The 2nd Session of the 13th Chinese National People’s Congress (NPC) is currently being held in Beijing and as the foundation of national prosperity, the manufacturing industry remained a hot topic of discussion at NPC. Not only at main sessions, but it has also been a focus of the media.
Taking the opportunity, Deputy to NPC and Secretary of the Communist Party and Chairman of LiuGong Group, Mr. Zeng Guang’an, spoke on LiuGong’s high-quality development to the public.
LiuGong has been adhering to a “Three Totals” strategy -- Total Globalization, Total Solution and Total Intelligentization -- for years and under its guidance, LiuGong has continuously increased its investment in R&D, accelerated its product updates and technology innovation, pushing the company’s transformation from traditional manufacturing company to a globalized, service-oriented and intelligent-developed company.
LiuGong is committed to self-innovation. To this end, LiuGong’s R&D has developed LDP (LiuGong Development Process) which ensures standardization and also improves the quality and efficiency of production. LiuGong has successfully upgraded its H-series wheel loaders, E-series excavators and B-series skid steer loaders and launched them in the market in recent years. Meanwhile, a series of new Stage IV machines has generated good feedback from customers after being sold in high-end markets.
In addition, joint ventures with ZF and Cummins enables LiuGong to develop and produce high quality, advanced transmission systems and diesel engines that perfectly suit LiuGong’s equipment, ensuring LiuGong’s competitiveness among world CE manufacturers.
Under the guidance of total intelligentialize, LiuGong’s intelligent technology continues to progress. One of the most highlights is the application of intelligent loading and shoveling systems in LiuGong wheel loaders. Additionally, LiuGong expects to launch 2D guidance systems for excavators and new equipment with LiuGong’s intelligent management system as standard configuration in the near future. LiuGong also achieved great progress in large-scale equipment. For instance, large excavators up to 50-70 tonnage and wheel loader of 9-12 tonnage increased in demand due to the maturity of their technology. LiuGong cranes also saw an increase in demand. It also reflects at the launch of new generation products including graders, cranes, rollers, forklifts among others.
When speaking of industrial internet, he shared with media: For the CE industry, firstly, it is the machine with intelligent technology; secondly, the data can be shared among enterprises, customers and related parties; thirdly, on a higher stage, it is the data processing between one machine to another. As a result, the industrial internet is a comprehensive system based on intelligent machines and effective application of other technologies.
More than 100,000 LiuGong machines are working around the globe, bringing accessible data, and now we only need to work on this data. For instance, several machines were sold to one customer and allocated to different operators. These machines are of the same model, but due to the difference of operators’ skills, the outcome, such as working efficiency and fuel consumption, is different. Through the analysis of the data we collected, we can provide advisory recommendations to our customers.
Additionally, LiuGong’s total solution strategy is progressing steadily. Zeng Guang’an introduced, “We are continuously improving our marketing ability. LiuGong’s products should closely match local markets, LiuGong's service capability and brand awareness should be deeply rooted in these markets, and LiuGong's R&D, manufacturing and marketing systems should be highly integrated. We have built a comprehensive business covering the entire value chain, which also improves our services to customers, in India, Poland and Brazil, and North America will also be included as we grow.” LiuGong's total solution strategy enables LiuGong to know more about machines, construction and engineering. LiuGong has established a customer-oriented organization to provide customers not only with “machine life cycle-based” solutions, but also with “construction application-based” industry solutions.
Besides any single product, LiuGong provides a full range equipment to meet customers’ application needs. Take a road contractor as an example, LiuGong can provide him with a full range of LiuGong wheel loaders, excavators, bulldozers, graders and rollers, which are all needed in road construction. LiuGong also provides a variety of services beyond the equipment, like financial programs, operation and maintenance training, outsourcing service, remanufacturing, and equipment leasing. In the next step, LiuGong is to exploit new service businesses such as construction process planning, consulting, equipment selection and so on. LiuGong’s goal is to be capable of supporting our customers in all aspects of their business.
Total globalization is not only strategically important but it is also a long-term and core principle of LiuGong’s vision. One of the most valuable opportunities for LiuGong is the huge demands that have been realized with the implementation of the national “One Belt and One Road” initiative. LiuGong’s product portfolio is comprised of 32 full range product lines in 13 categories, covering excavation, shoveling, lifting and hoisting, industrial vehicles, road construction and maintenance, concrete, piling, prestressing, etc. It can provide total solutions, product combinations and after-sales support for transportation and infrastructure construction along OBOR as well as around the globe. Through constantly marketing, building manufacturing plants, M&A and laying out of strategic alliances in overseas markets, LiuGong has achieved significant progress in its globalization. For the OBOR alone, there are about 120 dealers, 348 outlets, 6 parts distribution centers and 6 training centers has been built. LiuGong can produce wheel loaders, excavators, rollers and graders in China, India, Poland and Brazil. Among which, the localization has reached nearly 50% in India, ensuring customers along OBOR can receive both products and services with high quality and great efficiency. In 2018, LiuGong’s sales revenue in this area reaches 65% of total overseas sales revenue, rising 34% compared to last duration.