LiuGong opens new subsidiary in Dubai
Heavy machinery manufacturer LiuGong is to expand its ME footprint
Chinese heavy machinery manufacturer LiuGong is to expand its Middle East footprint by opening a subsidiary called Machinery Middle East located in Dubai’s Jebel Ali Free Trade Zone.
The Middle East opening is the latest move by LiuGong in its strategy to strengthen its position as one of the top 25 largest heavy equipment manufacturers in the world.
In addition to the Dubai subsidiary, LiuGong is also opening subsidiaries in Johannesburg, South Africa, and The Republic of Singapore.
LiuGong Machinery Middle East is expected to become fully operational in early 2011. It will include 1,000 square meters of office space for support personnel, and a parts depot. It represents a US$3.5 million investment for the company.
Liang Yongjie has been named general manager and the subsidiary includes a sophisticated parts depot that enables LiuGong to warehouse parts close to customers and markets. Parts and machines will be imported to the depot, tested and made available for customer demonstration. LiuGong claims it can ship parts to Dubai and across the Middle East within 48 hours.
Zeng Guang’an, LiuGong’s president, noted this move is a continuation of LiuGong’s global expansion strategy and that Dubai is ideally situated in the Mid-East.
“Dubai represents an important expansion for LiuGong,” Zeng said. “In the past three years, we have continued to sign major contracts, such as our sale of 45 refurbished machines in Saudi Arabia, which occurred in June. Our dealers there have been very successful in placing LiuGong in customer demonstrations and at job sites. The port at Jebel Ali and its free trade zone supports our imports, and allows us to ship machines and parts quickly into and out of the entire region.”
LiuGong already has four dealers in the region in Dubai, Yemen, Saudi Arabia and Oman moving 500 machines a year. Wheel loaders and excavators are its top sellers.