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Construction machinery goes global against the trend and achieves new heights in innovation

Aug 16, 2024

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Longgong is one of the leading enterprises in the construction machinery industry, with its loader sales ranking first in the industry, and it is also a flagship product exported overseas.

 

Recently, when the reporter walked into the production workshop of Chinese Loong Holding Co., Ltd. (hereinafter referred to as "Longgong"), the workers were busy in each process, and rows of installed loaders on the square were parked neatly. This is a skid steer loader ready to be sent to Central Asia. This year, the company has continued the good momentum of last year, with rapid export growth, "said the relevant person in charge of Longgong.

This year, despite the overall sluggish external economic situation, the export scale of construction machinery in Longyan City has achieved a counter trend growth. According to statistics from Longyan Customs, from January to July, Longyan City exported construction machinery worth 1.48 billion yuan, an increase of 48.3% compared to the same period last year. Among them, exports in April this year increased by 170.7% year-on-year, reaching a new high for the year; The export value in June was 270 million yuan, a year-on-year increase of 64%.

 

Practicing 'internal skills' is the key

The machinery industry is one of the three billion dollar industries in Longyan. As a core component of the machinery industry, Longyan's engineering machinery industry has developed over the years and has formed strong capabilities in casting, forging, and mechanical processing. It is understood that Longyan Engineering Machinery exports a total of 52 product categories, including complete vehicle products such as forklifts and excavators, as well as engineering machinery components.

Since last year, there has been a strong demand for overseas infrastructure, which has supported the growth of construction machinery exports. The relevant person in charge of LongGong said that LongGong's annual exports were 2.6 billion yuan, a year-on-year increase of 70%.

With the continuous promotion of the "the Belt and Road" initiative, Longyan's construction machinery products such as excavators, forklifts and loaders are widely welcomed in Southeast Asia, West Asia, Africa, South America and other regions. "According to statistics, in the first seven months of this year, Longyan City exported 990 million yuan of construction machinery to countries along the" the Belt and Road ", a year-on-year increase of 63.7%, accounting for 67.3% of the city's total export value of construction machinery in the same period." Ouyang Fangfang, Chief of the Comprehensive Business Section of Longyan Customs, introduced.

 

The opportunity period in the export market is fleeting, and how to seize the opportunity and improve internal skills is the key.

In the context of Longyan City's determination of machinery as the dominant industry, Longgong started its development with only one large workshop in 1993 and completed the "transformation" of entering domestic large and medium-sized cities, international markets, and successfully listing in 30 years. Today, it has developed into one of the top three in China's loader industry, with vehicle sales ranking first in the country and listed as one of the "Top 50 Global Construction Machinery Companies".

Longyan is the birthplace of Longgong and the most important production base. Over the years, Longgong has invested in the construction of key provincial and municipal projects such as loaders, excavators, drive axles, gearboxes, hydraulic cylinders, and precision castings and forgings in Longyan.

As one of the leading enterprises in the national construction machinery industry, Longgong focuses on improving product quality and brand influence. In recent years, we have continued to promote the transformation and upgrading of our products towards high-end, intelligent, and green products. We have developed construction machinery that can flexibly adapt to various construction scenarios. Among them, the skid steer loader has become a star product due to its small and flexible size, as well as its multifunctional and multi-purpose characteristics.

Product upgrades also bring value enhancement. Data shows that in the first seven months of this year, the average price of Longyan's exported construction machinery increased by 11.2%.

At the same time, the emergence of new energy engineering machinery has also provided new growth points for Longyan engineering machinery. The relevant person in charge of Longgong said that with the growth of demand in Russia, Central Asia and South America, and the superposition of new energy product outlets, the company's orders have steadily increased significantly. Only for the United States and Türkiye to export lithium forklift trucks, this year's export volume is expected to increase by 50% and 20% year on year respectively.

In the workshop of another construction machinery enterprise, Longyan Tongdao Machinery Equipment Co., Ltd., there is also a hot production scene. We mainly produce mechanical parts such as forgings, processed parts, and stamping parts, and export our products to countries such as the Netherlands, Germany, and Australia. In the first half of this year, the export value was 4.24 million US dollars, a year-on-year increase of 70%, "said Chen Meiyan, the customs officer of Longyan Tongtong Machinery Equipment Co., Ltd.

Smooth Machinery mainly produces customized products for customers. This year, the company actively participated in domestic and international machinery and equipment exhibitions while ensuring existing orders, further expanding overseas customers and striving for new orders. Chen Meiyan said that the company has improved its production and supply capabilities by increasing equipment and expanding personnel.

 

High quality service guarantees exports

In addition to improving the internal strength of enterprises, relevant departments should also provide excellent export services, which is also an important reason for opening up export markets. It is reported that in order to implement the nine measures of Xiamen Customs to support Longyan City in building a high-quality development demonstration zone for the revolutionary old area in western Fujian, and promote the stability and quality improvement of foreign trade, Longyan Customs continues to carry out "one enterprise, one policy" research to relieve difficulties for enterprises in the old area of western Fujian.

Recently, Longyan Customs staff learned during their investigation that Longgong's loader has encountered clearance blockages at the port customs. The customs immediately activated a fast clearance contact mechanism to ensure smooth clearance. The speed of customs clearance at the port has significantly increased, saving half of the time compared to before. The relevant person in charge of Longgong praised the efficient service of Longyan Customs repeatedly.

In response to the characteristics of large volume, time-consuming loading and unloading, and complex international standard system of construction machinery, Longyan Customs continuously optimizes regulatory services, proactively connects with enterprise production plans before export, sorts out technical standard requirements of exporting countries, and strengthens policy guidance throughout the entire process; During customs clearance, guide enterprises to apply policies such as advance declaration and direct loading upon arrival, provide appointment inspection services, and assist in the rapid clearance of construction machinery.

Next, Longyan Customs will implement more precise assistance measures such as "one county, one policy", "one enterprise, one policy", and "customs enterprise through train" based on the "16 Measures for Optimizing the Business Environment of Customs" and the 26 detailed measures for optimizing the business environment of Xiamen Customs, to promote the formation of a more local industrial characteristic foreign trade development pattern and help Longyan City play the "characteristic industry card", "said Fu Weiming, Deputy Director of Longyan Customs.

 

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