Spotlight Feature Articles LIUGONG MACHINERY | Page 4

HIGH PROFILE Paul Moore in the LiuGong R&D centre semianechoic noise testing chamber in Liuzhou for LiuGong’s mining trucks is using a hybrid approach with batteries recovering energy on downhill loaded hauls. LiuGong has also introduced a new 5G-based remote-control intelligent wheel loader, codeveloped and supported by China Telecom and Huawei technology. And its new F-series excavators combine the integrated operation of a single excavator, intelligent control, network-based integration of excavators, intelligent monitoring, detection, prediction and remote control. IM saw close up the new 990F model, a new-generation intelligent hydraulic excavator that adopts a fully electronically controlled advanced hydraulic system, heavy-duty structure and optimised design. Boasting excellent operating efficiency, low oil consumption and high reliability, the product can be used for excavation and loading in open-pit mines. IM Paul Moore also spoke with Vice President, Huang Min, responsible for the mining segment, who offered further insight into that part of the business Q LiuGong has traditionally focussed on the construction sector but does have a range of products that are relevant to mining eg Dressta, larger wheel loaders, larger excavators. Are you going to focus more on mining in the future? A Yes, you are right that LiuGong has mainly positioned itself as an earthmoving equipment supplier. But we are evolving and it is also our intent to grow into a major mining and quarrying machine provider. This includes not only excavators, dozers and wheel loaders but also dump trucks, crushing & screening machines and other mining equipment. We have already started in 2014 a cooperation with Metso (now Metso Outotec) for the supply of screening technology. LiuGong Metso Construction Equipment (Shanghai) Co Ltd combines Metso's know-how in the track-mounted crushing and screening business and technology with LiuGong's extensive distribution resources and manufacturing capabilities in China. We also some years ago formed a JV producing mining dump trucks. This was developed as far back as 2011 when we acquired 42% of Beijing Capital Steel Heavy Duty Truck Co Ltd. Since then the ownership level of that company increased to 96% then to 100% in 2019. We also moved the manufacturing from Beijing to Changzhou, where we also make smaller excavators and dozers and which is also the HQ of the JV with Metso Outotec. We are already in a position to produce mining trucks up to a 240 t class and have a 150 t truck in development. A prototype was built which we are making improvements such as upgrading with new drive technology. So actually, as of today you could say that we already offer to the Chinese market a full line of mining equipment. The overseas market will take more time, but this will come. Into the future it is also our intention to develop underground mining equipment lines though this will require more investment in electronic controls and is more our vision rather than a current reality. Q Will the greater mining focus see any organisational changes? A We are already changing our organisation to reflect the plans for mining and quarrying solutions. We have created a specific and independent mining business unit within LiuGong in Changzhou (LiuGong Changzhou Mining Machinery Co Ltd) with an initial investment of RMB 80 million which was followed by a further investment of RMB 180 million. Overall, we are also investing more and more in mining R&D and marketing. Major investments have been made in developing larger tonnage wheel loaders and excavators, while also developing mining class dozers and motor graders. It is the intention that the mining class excavators will be developed specifically within this unit instead of at the current smaller excavator lines. Q Can you give us some idea of the models that you have in development for mining? A We are developing a 120 t hydraulic excavator, but actually for many smaller Paul Moore sat down with Huang Min, LiuGong Vice President responsible for mining mines, the 90 t model is enough for their needs. It matches very well with our popular new 90 t class wide body tipper dump truck, for example. Of course, for our 150 t and 240 t mining trucks, another step up in excavator class will be needed up to about 250 t and this is something we intend to do. Q What is the current status and what are your future plans for the Metso Outotec JV? What about other partnerships? A The JV is currently 50:50 held by both companies; so there is branding on the domestically sold crushing and screening equipment for both companies. LiuGong is mainly responsible for the sales of the products with Metso Outotec carrying out the manufacturing in Lizhou. But we are exploring the deepening of cooperation between the two companies. We also have our JV with Cummins, Guangxi Cummins Industrial Power, which produces mid-range engines in Liuzhou but to have this relationship is useful as we look to incorporate high horsepower Cummins engines into our growing product lines for mining markets. Q How will you grow mining focus internationally? A Our overseas focus is currently on countries where we have established quarry class equipment businesses already such as South Africa where we have our larger excavators working, Mongolia where our larger wheel loaders are operating, and Indonesia. In Poland of course we have the famous Dressta factory as part of our company, which has a high domestic market share as well as in Eastern Europe and the CIS and is a growing player globally in mining dozers. And of course mining companies already using Dressta dozers means they already get to know LiuGong and therefore may consider our other equipment lines. This is happening in Russia, for example, with our larger wheel loaders. International Mining | SEPTEMBER 2020