Liugong is striving to sell more than 2,000 machines abroad in 2007 with a total value of $80 million to $100 million.

The company sold 1,455 of its machines abroad in 2006, taking in more than $68 million in foreign currency.

According to the chairman, developing and moderately developed countries and regions are Liugong's current target markets, while developed countries like the United States, EU countries and Japan are markets the firm is eyeing in the coming few years.

"We hope the business turnover in developed countries will account for 20 percent of our total overseas business revenue by the year 2010," he said.

Wang said that Liugong has been generous in research and development (R&D) spending to maintain its competitive edge at home and abroad, with R&D earmarked for about 2 percent of the company's total annual sales revenue.

Revenue totalled 8.09 billion yuan in 2006.

The company has also joined forces with globally renowned companies like Germany's ZF for the development of core technology and components for heavy machinery.

Citing an instance of R&D success, he said machines Liugong has developed for plateau regions have definitely topped other rivals at home and abroad.

To be well prepared for the market penetration into developed countries, he said, Liugong has set up its first overseas branch in Australia, for R&D, testing and marketing with new technological and environmental requirements.

Wang said that Liugong will redouble efforts to promote international certification for its products, which are essential to entering high-end markets.

The US-based Association of Equipment Manufacturers estimates that global market demand for heavy machinery stands at about $148 billion at present; and the demand will grow at 3 to 5 percent year-on-year.

    
                                                                       (China Daily 01/25/2007 page13)

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