Guangxi LiuGong Machinery expects to boost its Southeast Asian revenue following the forging of a strategic partnership in the region.
The Chinese construction company signed a Memorandum of Understanding (MoU) with the United Overseas Bank to boost its business in the region.
The agreement was signed on Thursday, July 12, at LiuGong’s Asia-Pacific subsidiary office by LiuGong’s president of machinery for Asia-Pacific, Chen Hao, and the managing director and head of sector solutions at UOB, Karunia W Tjuradi.
Hao said, “Since LiuGong set up its Asia-Pacific subsidiary office in 2011 to export its construction equipment to Southeast Asia market and we have been gaining market acceptance offering quality products as well as excellent after sales services.
“Our perseverance and investment has started to pay off and the market has also showed signs of recovery this year. In this first quarter, we experienced more than 50% growth increases in sales volume in the Southeast Asia market.”
Financing solutions established
The MoU establishes a partnership between LiuGong and UOB to provide financing solutions for LiuGong’s dealers and customers and will bring several benefits to both. These include easy access to financing solutions specifically for them which they previously did not have. They will enjoy interest rate loans at a more competitive rate due to the joint risks borne by the two organizations. Indonesia and Thailand will be the first two countries to have this scheme rolled out. This new understanding between the two organizations will also enable LiuGong’s key customers to enjoy better rebates and services when they obtain larger procurements.
Tjuradi said, “We wanted to work with the top OEMs from China and LiuGong is our top choice and was the first we approached for this program. We know that LiuGong will materialize their overseas ambitions and UOB is here to fuel that.”