On 22 February 2008 LiuGong signed a series of investment agreements to establish a manufacturing center in Bengbu, Anhui Province to brand, develop and manufacture a construction crane product line. This investment takes a large step towards LiuGong's goal of becoming a large world-class construction equipment manufacturer and closely follows the investment in LiuGong's Northern Manufacturing Base in Tianjin and Compact Equipment Manufacturing Base in Jiangsu. The total investment will be more than RMB 1 billion.

 

Bengbu city is in the northern part of Anhui Province, which is famous for coal mining and its machinery industries. With its strong history in machinery manufacturing, Bengbu City offers LiuGong plenty of skilled labor and technical expertise, growing markets and attractive government policies. Bengbu Zhencong Anli Machinery Co., Ltd. is one of the top 5 crane manufacturers in China, with many successful products, including hydraulic cranes, walking cranes,high altitude work vehicles, and a comprehensive dealer network throughout China. It sold 1000 machines in 2007 and has the fifth largest market share. The merger offers LiuGong the opportunity to leverage its R&D resources, brand and global marketing network to grow.

 

The investment includes the acquisition of Bengbu Zhencong Anli renamed Anhui LiuGong Crane Co., Ltd and the spending of RMB 1 billion to reorganize, expand, and modernize the company. When completed the modernized facility will cover more than 320,000 square meters and have a production capacity of more than 5000 units by the end of 2012.