LiuGong evaluates Middle East and Africa strategy

LiuGong considers new joined-up approach for Middle East and Africa

LiuGong chiefs are currently considering whether to adopt a joined-up approach for operations in the Middle East and Africa.
LiuGong chiefs are currently considering whether to adopt a joined-up approach for operations in the Middle East and Africa.
LiuGong's Yue Yong tells PMV Middle East why increased brand awareness is so important to his company's global strategy.
LiuGong's Yue Yong tells PMV Middle East why increased brand awareness is so important to his company's global strategy.

LiuGong is considering the adoption of a joined-up approach for the Middle East and Africa regions.

The move would form part of the Chinese manufacturer’s strategy to make new inroads into the global construction machinery market.

LiuGong occupied a prime spot at the third instalment of INTERMAT Middle East. The company is looking to build upon its recent success in the region by using such events to increase brand awareness.

“It is important for LiuGong to push its brand in the international construction market,” said Yue Yong, senior regional manager at LiuGong Machinery (Middle East) FZE. “We see a promising future in this region and it is important for us to cooperate with potential customers. LiuGong will continue to work closely, both with customers and with its distribution network. It is very helpful, therefore, to have a strong presence at INTERMAT, which is one of the biggest shows in the Middle East.”

Speaking on the second day of the event, Yong was happy with the number of potential business leads visiting his stand. Even so, he pointed out that LiuGong’s decision to exhibit at INTERMAT Middle East was not solely sales driven.

“For us, the point of the show is not necessarily to sell machinery,” Yong explained. “It is about demonstrating the quality of our products. LiuGong is here to show off its brand. This is actually most important because Chinese construction equipment is relatively new to this region. We have to build market confidence and INTERMAT Middle East forms part of LiuGong’s strategy to achieve this goal.”

The manufacturer has been making impressive progress in this regard. 2013 was a good year for LiuGong in the Middle East, and Yong is hoping to make further gains over the coming months.

“We enjoyed excellent progress in this market last year,” he said. “We exported more than 1,000 units to the region, and our annual sales were in excess of $50m. In fact, compared to 2012, we doubled sales in 2013. Clearly, this is good news, and it represents just part of the group’s overall business. Things are definitely going well for LiuGong in the Middle East.”

However, it seems that LiuGong is far from content to rest on its laurels. In order to capitalise on recent growth, the firm is now looking into the possibility of joining up operations across a huge geographical area.

“We are currently in a period of reorganisation,” Yong revealed. “We are considering a strategy whereby LiuGong would join up its operations in the Middle East, North Africa, and South Africa. We want to open new dealerships across this area with the aim of shipping more units to the region as a whole.”

 For full coverage of INTERMAT Middle East 2014, check out the February issue of PMV Middle East.

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