The market for construction machinery is a tough one, dominated by a handful of well-known global brands.
But there is a new force determined to create a name for itself in the European theatre – the Chinese manufacturer LiuGong, which has been laying the foundations for growth over a number of years and is now poised to challenge the established order.
LiuGong is the world’s 10th largest construction equipment manufacturer by market share. It is best known for its wheel loaders (where it leads the world) and excavators but LiuGong offers a full suite of construction equipment and specialised machines such as materials handling equipment and mobilised cranes.
LiuGong’s relationship with Cummins was formalised in a joint venture agreement signed in 2011 to build an engine manufacturing facility in Liuzhou, Guangxi Province, southern China. The two went on to develop the highly successful 9.3-litre, 162 kW Cummins L9.3 for the domestic Chinese market.
A year later, the focus switched to expansion in Europe with LiuGong’s acquisition of Huta Stalowa Wola (HSW) of Poland. The deal included HSW’s distribution subsidiary, Dressta.
Over the past few years, LiuGoing has been slowly raising its profile in Europe but it looks like the pace is picking up. LiuGong acquired its sole UK dealer – Construction Plant and Machinery Sales of Portsmouth. The new entity, trading as LiuGong Machinery (UK), is now a wholly owned foreign entity of LiuGong.
Steven Ford, Operations Director of LiuGong Machinery (UK), said news of LiuGong’s investment in its first international retail operation was well received by customers. “We took a seven-machine line-up to Plantworx 2019 – four crawler excavators plus the 877H wheel loader, our 950E 30-metre high-reach demolition excavator and the 909ECR mini excavator – and had really positive feedback, especially from our customers in the demolition industry, where we have made great inroads in recent times.
“These companies understand that direct support from the manufacturer means greater stability, greater focus on service and a broader range of machines to fulfil their needs — all leading to enhanced residual values for machines.
“And with production of seven excavator and wheel loader models in Poland, LiuGong can supply more machines at shorter delivery times.”
LiuGong Machinery (UK) has five branches around England and plans to open another two. Further investments are underway to increase capacity at its spare parts distribution centre in Portsmouth on the south coast of England, which is being seen as a hub for northern Europe.
Mr Ford said LiuGong machines were valued for their simplicity: “They are easy to operate and easy to own: downtime is very low and we see little in the way of warranty work. Many of the product design concepts originated here in the UK, at our Industrial Design Centre in Stoke, so the machines are perceived as European – and of course many of them come with the added credibility of a Cummins engine.”
