LiuGong has successfully signed a Memorandum of Understanding (MoU) with the United Overseas Bank for partnership in machinery financing in Southeast Asia. The MoU between Guangxi LiuGong Machinery Co and UOB was signed on July 12, 2018 at LiuGong’s Asia Pacific subsidiary office located in Singapore.
“Since LiuGong set up its Asia-Pacific subsidiary office in 2011 to export its construction equipment to South-East Asian market, we have been gaining market acceptance offering quality products as well as excellent after sales services,” said Chen Hao, President, LiuGong Machinery Asia Pacific, while sharing his thoughts at the MoU Signing. “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 per cent growth increases in sales volume in the Southeast Asia market.”
According to Chen Hao, this historic 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 bore by the two organisations. Indonesia and Thailand will be the first two countries to have this scheme rolled out. This new understanding between the two organisations will enable LiuGong’s key customers to enjoy better rebates and services from LiuGong when they obtain larger procurement. The medium and smaller size company customers will be able to afford to buy up-to-date technology machines which they could not afford previously.
“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,” said Karunia W Tjuradi, Managing Director and Head of Sector Solutions Group, UOB, while sharing his thoughts at the MoU signing ceremony. “We know that LiuGong will materialised their overseas ambitions and UOB is here to fuel that,” he added.
Luo Guobing, General Manager, LiuGong Overseas Division, who was not able to attend the MoU signing ceremony congratulated the event from LiuGong headquarters in Guangxi, China and commented, “LiuGong has big, ambitious plans in the overseas market. It has always been LiuGong’s interest to develop our dealers and providing them with competitive advantages and strategies to optimise their operational and financial performances. When UOB approached us earlier this year and proposed the collaboration, we found it to be very timely and fitting, UOB, being an established premier bank, has ASEAN’s largest footprint of branches distributed across the SEA markets, their extensive clientele network of machinery equipment and component dealers and end-users in SEA fits our current expansion plans in SEA.”
LiuGong is one of the top OEMs in the world that has full range of products for construction building and mining. UOB’s comprehensive banking facilities can entice dealers and end-users to support LiuGong’s sales and market share expansion. Moreover, this strategic machinery partnership programme is a UOB initiative designed specifically for the machinery, equipment and component sector.