Chinese construction equipment company bets big on the African market

Riding on the Belt and Road Initiative infrastructure development projects, another key machinery manufacturer from China is accelerating investment in Africa, looking at more growth in the continent.

Zeng Guang'an, chairman and CEO of LiuGong, said Africa is a highly promising strategic market for them, especially with the many ongoing infrastructure development and real estate construction projects.

"Our decision to establish a company in East Africa reflects our commitment to increasing investment in the region," he said in an interview in Nairobi, capital of Kenya.

"We have relocated our products, distribution centers, and even simple assembly lines to local markets. This enables us to accelerate deliveries, streamline spare parts distribution, and enhance service efficiency."

Zeng said the company has established training centers in all the four African regions, with a particular emphasis on technical training.

In West Africa, the company has already launched a technical training institute in collaboration with relevant Chinese organizations.

"Our goal is to provide local young people with technical education, equipping them with comprehensive and systematic knowledge of our products, operations, and maintenance," he said.

"Our technical training schools will continue expanding to other parts of Africa, helping to rapidly improve local technical expertise. This is an important social contribution that we are proud to make to local communities."

Noting that the agricultural sector in East Africa is poised to grow, he expressed the company's readiness to support the sector through provision of the required equipment and technology.

In addition to Kenya, the company has opened subsidiaries in some other African countries such as South Africa and Cote d'Ivoire. Plans are underway to establish subsidiaries in key markets such as Nigeria, Tanzania, and Ethiopia, according to Zeng.

Francis Mwangangi, the deputy governor of Machakos County where LiuGong Machinery East Africa is located, congratulated the company for its extensive investments across the world, noting that it's fighting global inequality and poverty.

"Even as you invest here, you are not only advancing your interest but you are also trying to assist the national and the county governments to create job opportunities which create wealth," he said.

To participate in greenhouse gas emission reduction efforts, LiuGong also pioneered electric loaders, according to the company.

Edithmutethya@chinadaily.com.cn