Liugong joint ventures to drive growth

Liugong said its joint ventures in China with ZF and Cummins will be key to its growth in years to come in both its domestic and export markets.

They will also see the equipment manufacturer source more components from these two key suppliers – ZF for axles and transmissions, and Cummins for diesel engines.

Speaking at the Bauma exhibition, Liugong president and vice chairman Zeng Guang’an said, “In the next three years we could triple our business with Cummins and ZF.”

He added, “We are going to change to Cummins for all of our machines, we are also going to go to all ZF axles.”

Cummins chairman & CEO Tom Linebarger said of the 200,000 m2 Liugong-Cummins joint venture factory in Liuzhou, China, “It is one of the largest production facilities for off-highway engines in China.”

He continued, “There is a growing group of countries that want better technology at a more affordable price. Finding that sweet spot is what we’re trying to achieve, and we would like to see our joint venture get to 50,000 engines (per year).”

Hermann Beck, ZF vice president for off-highway systems said, “We are developing are developing base products in China for the Chinese market that should give us better market penetration.”