On July 7, 2011, experience exchange meeting for national enterprises on merger and restructuring sponsored by National Industry and Information Technology of the People’s Republic of China was held in Beijing. Guangxi Liugong Machinery Co., Ltd. (LiuGong), as the only enterprise representative in the field of construction machinery industry, was elected to be among the Top Tem Modal Enterprise in the key sectors. The spokesman of LiuGong made a thematic speech on behalf of the whole company.

LiuGong, undertaking the mission of rejuvenating the national equipment manufacturing industry, became the first enterprise to conduct strategy of merger and restructuring, which was also early and advanced in China.

LiuGong walked out Guangxi Province, acquiring Jiangsu Road Machinery Factory and Bengbu Bengbu vibro Amway Construction Machinery Co, Ltd., restructuring Shanghai Huguang Forklift Truck Factory and also holding shares of Liuzhou OVM Machinery Co., Ltd., Shanghai Hold Machinery Co., Ltd. and Shanghai Jintai Construction Machinery Co., Ltd. in these years.

In the course of carrying out merging and restructuring strategy, LiuGong actively responded the national strategic deployment, and persistently circled around the main concepts of the developing strategy. Taking the starting point of improving the core competitive force of the enterprise, LiuGong was the pioneer in terms of conducting merger and restructuring work in mainland China, complying with the requirements of the country on transferring the developing modes of economy.

In these ten years after entering the new century, LiuGong successfully entered new industries through mergers and acquisitions, building up a complete product line in the specific field. The company not only realized the cooperative development of various business modules, but also implemented the leap-forward development of LiuGong as well as their cooperative partners, gradually marching towards the target of being an internationalized enterprise from the former role as a Guangxi Enterprise.

On the basis of merger and acquisition strategy in these years, LiuGong won the praises from the leaders of national ministries and committees, who considered that LiuGong was strict with the flow of regulations during the period of carrying out merger and acquisition strategy, evading the risks in the course of fast growth in a better way, and erecting a modal for other enterprises on the aspects of merger and restructuring.

About LiuGong

Founded in 1958, Guangxi Liugong Machinery Co., Ltd. (LiuGong) is China’s leading construction equipment manufacturer and the first stock-listed company in domestic industry. Employing more than 6000 people and with 2006 revenues of 5.18 billion RMB, including 67.3 million USD from exports, LiuGong is the world’s second largest wheel loader manufacturer for annually outputting more than 20,000 units.