The hottest Liugong Latin America is poised to pla

Liugong Latin America: preparing for the second "local market" in six years

Liugong Latin America: preparing for the second "local market" in six years

China Construction Machinery Information

"One of the biggest bottlenecks in Latin American economic transformation is infrastructure, which complements China's advantages. On the whole, Chinese enterprises have less large-scale, group and cluster investment in Latin America. In the future, establish industrial parks and even special economic zones in Latin America. Reeve said that the agglomeration development of Chinese enterprises may benefit each other, which is a development direction." (Yang Zhimin, researcher of the Economic Research Office of the Latin American Institute of the Chinese Academy of Social Sciences)

from the northern hemisphere to the southern hemisphere, and from the eastern hemisphere to the Western Hemisphere, China and Latin America are located at both ends of the earth. In the impression of many Chinese people, Latin America is equal to football, samba, tropical rain forest, and is the haunt of Pirates of the Caribbean and 007. However, in the view of investors, Latin America may be equal to opportunity, and it is a rich mine that can dig gold

on January 8, the first ministerial meeting of the China Latin American and Caribbean Community Forum was held. The first ministerial meeting of the China Latin America forum, which gathered leaders of the "troika" member countries of the celac and 20 foreign ministers, as the opening work of China's all-round diplomacy in 2015, released a signal of a new breakthrough in China Latin America relations

"China is transforming, and Latin America is also trying to transform. Everyone is looking for new impetus. One of the biggest bottlenecks in Latin America's economic improvement in the process of transformation is infrastructure. There are deficiencies in some projects related to people's livelihood, and these deficiencies are complementary to China's advantages." Yang Zhimin, a researcher at the Economic Research Office of the Latin American Institute of the Chinese Academy of Social Sciences, said

a Chinese machinery enterprise has also noticed this market potential. Located in Liuzhou, an important industrial town in the hinterland of Zhuang Township, Guangxi Liugong (11.43, -0.03, -0.26%) Group Co., Ltd. (hereinafter referred to as "Liugong group") has been working in remote Latin America for six years. Opening Liugong's overseas territory, Latin America has become its main overseas market

in 2015, Liugong will further increase its investment in the Latin American market, and it is planned to invest in the construction of a manufacturing base in Sao Paulo, Brazil. "Our strategic goal for Latin America is to expand the market share of Liugong products in Latin America, become a well-known local machinery supplier and service provider that makes the equipment unable to work normally, with a year-on-year increase of 11.7%, and the market share of main product loaders in the top three." Luo guobing, vice president of Liugong and general manager of international business department, said

Liugong's investment path in Latin America: multiple capital increases

Liugong extended its tentacles to Latin America six years ago. Liugong Machinery Co., Ltd. (000528), a listed company of Liugong group, decided to establish a wholly-owned subsidiary in Latin America at the board meeting in November 2008. In October, 2009, Liugong machinery Latin America Co., Ltd. (hereinafter referred to as "Liugong Latin America company") was established. Its headquarters are located in the city of Belo Horizonte, Minas state, Brazil. The final registered capital is $2million, and its registered place is Sao Paulo, Brazil

it is learned from Liugong international business department that the establishment of a Latin American subsidiary focuses on the huge potential of the Latin American market. Brazil is a large steel country in South America, with the largest steel production in Latin America and the sixth largest steel producer in the world. Other countries such as Argentina, Peru, Chile and other countries are rich in various mineral resources, and the demand for engineering Mining machinery is also very considerable. At the same time, because Mexico is rich in oil and gas resources, construction machinery products also have great sales potential in oil construction projects

at that time, there was also a background related to the errors in labor. The globalization of Liugong entered a new stage. In 2008, Liugong successively established new companies in India and North America, and successively established marketing and customer support oriented companies, namely marketing service companies, in Latin American countries and regions such as Brazil and Mexico, so that Liugong's accessories and service networks can radiate to the North American market

"in fact, after developing global agents, we began to transfer Liugong's marketing service channel support from Liuzhou to all parts of the world according to different regions and cultures." Zeng Guangan, chairman of Liugong group, said in a speech at the end of 2014

Liugong's presence in Latin America spread rapidly in the following years. The author checked Liugong's annual reports in recent years and found that Liugong's investment in its Latin American subsidiary also increased year by year

in 2010, Liugong increased the capital of Liugong Latin America company by another $1million, with a total investment of $3million. In 2011, Liugong increased the capital of its Latin American subsidiary by another $200000

in 2011, in addition to the sales of original mechanical products, Liugong Latin America company also increased leasing services, training and other businesses, and carried out financial leasing cooperation with rachrandon Brazil company in Brazil. Liugong also provided a standby letter of credit support of R $1million (equivalent to US $600000) for this project

this year, Mexico was also "circled" into its Latin American territory by Liugong. In April, 2011, Liugong set up a sales company in Mexico - "Liugong Mexico Co., Ltd.". After becoming the holding subsidiary of Liugong Latin America company, the company received an investment of US $200000 from Liugong for three consecutive years from 2011 to 2013

in the following two years, as a major company in the Latin American market, Liugong Latin America company's investment increased significantly. In 2012 and 2013, Liugong's actual contribution at the end of the period was $5.2 million. The previous data in 2010 and 2011 were $3million and $3.2 million respectively

in 2014, "the men's football World Cup was held in Brazil. In order to effectively take advantage of this market opportunity, the total investment after the capital increase in 2014 was $5.7 million." Luo guobing, vice president of Liugong and general manager of the international business department, said

the proposal of Liugong's business plan and financial budget in 2015 shows that investment in Latin America will be further expanded. On January 9, 2015, in response to investors' questions about going to Latin America, Liu Gong made it clear that Latin America is an important target market of the company, and has set up subsidiaries and begun to build manufacturing bases

the manufacturing base mentioned by Liugong refers to the investment and construction of factories in Brazil. On December 31, 2014, Liugong announced that it planned to invest 30million yuan to build a manufacturing base in Sao Paulo, Brazil. Although the investment scale is relatively small, in Liu Gong's view, this is "another step taken to actively expand overseas markets"

in many capital increases, Liugong's sales territory in Latin America has gradually expanded. Liugong international business department said that the purpose of multiple capital increases was to improve the company's financial structure and strengthen the confidence of subsidiaries, agents and customers in Liugong. In order to further expand the popularity of Liugong brand in the American market, expand the market share of Liugong products, and further promote the process of internationalization strategy

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