Chinese construction equipment manufacturing giant LiuGong and ZF Group have begun a joint venture to develop and produce construction machinery axles for the Chinese market. The new company ZF Liuzhou Axle Co. will produce wheel loader axles especially tailored for the requirements of the Chinese market.
LiuGong and ZF are not strangers. The two companies have operated a joint venture since 1995 in Liuzhou, China, making construction equipment transmissions. The new joint venture will be at the same site.
“Our cooperation with LiuGong shows the “Design to Market” strategy which has been consistently followed by ZF, especially in the field of off-highway systems,” said Wilhelm Rehm, member of the board of ZF. “Together with our partner LiuGong, we have developed a product which exactly matches the requirements of the Chinese market.”
“During the past years [China] has experienced a rapid development of construction machinery,” added Dr. Stefan Sommer, CEO of ZF. “More than half the worldwide wheel loaders are produced in China. A considerable amount of machines are also being exported abroad from there. The impressive export, in particular, represents a big challenge since it frequently leads to market fluctuations. With the new joint venture, ZF will continue its growth in China.”