Guangxi Liugong Machinery Co.Ltd(000528) chairman Zeng Guangan: How did small factories in Zhibian become popular in the past? Overseas Chinese “smart manufacturing”?

“The early export of Chinese products overseas was based on cost performance. After decades of development, made in China became popular overseas because of advanced technology and innovation, showing a new international competitiveness.” Zeng Guangan, deputy to the National People’s Congress and chairman of Guangxi Liugong Machinery Co.Ltd(000528) (hereinafter referred to as ” Guangxi Liugong Machinery Co.Ltd(000528) “), said in an exclusive interview with China News Agency reporters in Liuzhou, Guangxi recently.

At the national two sessions, the intelligent development of China’s manufacturing industry and industrial innovation have always been the topic of Zeng Guangan’s attention.

Guangxi Liugong Machinery Co.Ltd(000528) , which is “in charge” by Zeng Guangan, is the leader of China’s construction machinery. This 64 year old enterprise has grown from a small branch factory in the southwest corner to a “sea going” sample of China’s equipment manufacturing industry, demonstrating the transformation of China’s construction machinery from “manufacturing” to “intelligent manufacturing”.

Once upon a time, Guangxi industry was poor. At that time, more than 500 workers from all over China responded to the call and came to Liuzhou with equipment and production technology to lay the foundation for Guangxi Liugong Machinery Co.Ltd(000528) construction. “In the past, Guangxi Liugong Machinery Co.Ltd(000528) relied heavily on imports in the field of key parts. Through independent R & D and innovation and continuously improving the level of intelligent manufacturing, now only 5% of key parts need to be imported.” Zeng Guangan said.

In Zeng Guangan’s view, technological innovation is the cornerstone of Guangxi Liugong Machinery Co.Ltd(000528) development Guangxi Liugong Machinery Co.Ltd(000528) under the guidance of “comprehensive intelligence”, continue to increase global research and development, invest in exploring cutting-edge technologies such as driverless, intelligent manufacturing and new energy, and many technologies are at the forefront of the world industry.

Driven by R & D innovation, Guangxi Liugong Machinery Co.Ltd(000528) successfully developed the industry’s first driverless loader, excavator and roller, and a new generation of green pure electric and Intelligent Loader and excavator; The first commercial 5g intelligent remote control loader developed by it can remotely operate Beijing loaders thousands of miles away in Liuzhou; In Guangxi Liugong Machinery Co.Ltd(000528) China polar scientific research engineering machinery laboratory, the environment of minus 50 to 60 can be simulated to help develop polar scientific research heavy equipment with low noise, low fuel consumption and high reliability.

“New energy engineering machinery has zero emission and low maintenance cost. Each new energy loader can save about 200000 yuan (RMB, the same below) of diesel oil cost every year. Guangxi Liugong Machinery Co.Ltd(000528) new energy loaders are not only delivered in batches in all parts of China, but also favored by overseas customers and exported to Indonesia.” Zeng Guangan said Guangxi Liugong Machinery Co.Ltd(000528) has become the standard setter of China’s electric construction machinery, and has helped China achieve the goal of “carbon peak and carbon neutralization” with green and low-carbon equipment.

In recent years, Guangxi Liugong Machinery Co.Ltd(000528) overseas markets have maintained rapid growth. During the covid-19 epidemic, Guangxi Liugong Machinery Co.Ltd(000528) overseas business still rose against the trend. In 2021, Guangxi Liugong Machinery Co.Ltd(000528) overseas revenue reached 5.5 billion yuan, a year-on-year increase of 62%. In January 2022, Guangxi Liugong Machinery Co.Ltd(000528) overseas market sales increased by 103% year-on-year, achieving a high-quality “good start”.

At present, one belt, one road, and more than 300 global distributors, 30 overseas subsidiaries and agencies, 5 global R & D bases, and more than 170 products are exported to more than 170 countries and regions. Guangxi Liugong Machinery Co.Ltd(000528) covers 85% countries and regions along the “one belt and one road”.

Zeng Guangan said that the deep cultivation of made in China overseas is inseparable from “good technology, good quality and good service”. “In the past, Chinese products were exported overseas by price advantage. Now the price gap between our products and the world’s top brands is about 5% ~ 10%

He said that after more than ten years of development, Chinese construction machinery enterprises have shown a new global competitiveness Guangxi Liugong Machinery Co.Ltd(000528) developing markets in the United States, Germany and the United Kingdom does not rely on cost performance, but on new technologies, as well as providing products that best meet the needs and improving the service system for overseas markets.

During the 14th Five Year Plan period, Guangxi Liugong Machinery Co.Ltd(000528) will increase investment in intelligent manufacturing and focus on the development of “lighthouse factories” for loaders, excavators, mining equipment, bulldozers and other construction machinery, construction machinery, agricultural machinery and loaders. “The ‘lighthouse factory’ is a key step for Guangxi Liugong Machinery Co.Ltd(000528) towards intelligent manufacturing, and the construction is planned to be completed by the end of this year. The factory has a large number of automatic and intelligent products, which will increase work efficiency by one third and reduce employees by one third.” Zeng Guangan said.

The development of Guangxi Liugong Machinery Co.Ltd(000528) is only a microcosm of China’s manufacturing exhibition. At present, China is not only the world’s largest construction machinery manufacturing base, but also the world’s largest manufacturing country for 12 consecutive years, and has become the only country in the world with all industrial categories. (end)

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