China's Liugong plans Latin American expansion

Chinese construction equipment manufacturer LiuGong Machinery Corp. is to open a Latin American headquarters in Belo Horizonte, Brazil.

Speaking to KHL.com at last week's M&T Expo (2 to 6 June, Sao Paulo), Jim Donoghue, president of LiuGong's Latin American subsidiary, LiuGong Latin America, said the new headquarters would be followed by a parts depot in the "coming months".

The company, which has been active in Latin America since 2005, currently has 10 dealers with 40 outlets, including two dealers in Brazil operating 10 outlets. It is "rapidly recruiting more", said Mr Donoghue, with a goal of 15 dealers with up to 100 outlets its target.

"We'd like to differentiate ourselves from the other Chinese manufacturers active here by providing a better class of after sales service," said Mr Donoghue, acknowledging criticism levelled at many Chinese manufacturers that while their equipment may be cheap after sales support outside its domestic market can be almost non-existent.

At present LiuGong sells wheel loaders, excavators, backhoe loaders, graders, rollers, skid steers, and forklifts in Latin America, with cranes "coming later", said Mr Donoghue. Most of its machines are Tier 3, although Tier 4 "is in our sights", added Mr Donoghue, with hybrid machines "under research".

Liugong, is headquartered in Guangxi, China, and has16 manufacturing plants producing more than 36000 machines annually for the domestic and export markets.