Chinese manufacturer LiuGong has begun construction on two new factories in an expansion move that represents major investment into new production.

The two plants, one in Eastern China in Changzhou, Jiangsu Province, and the other situated at the LiuGong manufacturing campus in Liuzhou, represent a total investment of more than ¥2.6 billion ( US$390 million.)

LiuGong officials broke ground in June on a state-of-the art hydraulic component manufacturing facility in the Liuzhou Yanghe Industrial Park. The facility represents a total investment of ¥1.10 billion (€118 million, US$165 million) for LiuGong and will manufacture hydraulic components that meet world-class standards for precision.

The factory floor will stretch to 70,244 square meters and the facility will employ more than 550 people. It will begin production at the end of March, 2011.

Production from the new Yanghe facility will be destined for both domestic and overseas wheel loaders, excavators, cranes, forklifts, road machinery and bulldozers.

The hydraulics factory is part of LiuGong’s overarching strategy to become a top 10 equipment manufacturer globally. At capacity, the plant will produce 355,000 cylinders and 238,000 valves per year.

LiuGong’s will do advanced research, design and engineering internally for hydraulic components specifically matched to LiuGong’s products.

The two new plants will be essential to LiuGong's global expansion plans

“This factory will be among the most advanced in the world,” said David Beatenbough, Vice President of Research & Development for LiuGong. “This groundbreaking represents LiuGong’s total commitment to quality in our quest to become a top global machine brand.”

“LiuGong is announcing the construction of two new factories for LiuGong, an expansion that represents major investment into new production, signifies the company’s confidence in its growth plans and enhances efforts to be a technological leader in the industry by producing advanced components in LiuGong factories,”a spokesman for the company told PMV magazine.

Source: Construction Week Online