LiuGong has successfully signed a MoU with the United Overseas Bank (UOB) for partnership in machinery financing in Southeast Asia. The MoU between Guangxi LiuGong Machinery Co and UOB was signed in July 2018 at LiuGong's Asia-Pacific subsidiary office in Singapore between Chen Hao, President, LiuGong Machinery Asia Pacific, and Karunia W Tjuradi, Managing Director and Head of Sector Solutions Group, UOB.
'Since LiuGong set up its Asia-Pacific subsidiary office in 2011 to export its construction equipment to the Southeast Asia market, we have been gaining market acceptance, offering quality products as well as excellent after sales-services,' said Hao, sharing his thoughts at the signing of the MoU. 'Our perseverance and investment have 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 increase in sales volume in the Southeast Asia market.'
According to 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 owing to the joint risks borne 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. Medium and smaller-sized customers will be able to afford machines with up-to-date technology, which they could not previously afford.
'We wanted to work with the top OEMs from China; LiuGong was our top choice and the first we approached for this programme,' said Tjuradi, speaking at the MoU signing.'We know LiuGong will materialise their overseas ambitions and UOB is here to fuel that.'
Luo Guobing, General Manager, LiuGong Overseas Division, who was unable to attend the signing ceremony, offered his congratulations from LiuGong headquarters in Guangxi, China.
'LiuGong has big, ambitious plans in the overseas market,' he said.'It has always been LiuGong's interest to develop our dealers and provide 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 timely and fitting. Being an established, premiere bank, UOB has ASEAN's largest footprint of branches distributed across the Southeast Asian markets; its extensive clientele and network of machinery equipment and component dealers and end-users in Southeast Asia fit our current expansion plans.'
LiuGong is one of the top OEMs in the world with a 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.