Global Chinese construction equipment firm LiuGong Machinery
has set up an assembly base in Kenya to act as the hub for its East African
operations.
The offices in Syokimau, Machakos County, will serve as the regional business hub for LiuGong Machinery East Africa Limited, a subsidiary of the LiuGong Group based in China.
The firm is the world's 10th-largest construction equipment manufacturer by market share and the world's largest manufacturer of wheel loaders.
It manufactures heavy-duty construction equipment such as excavators, dozers, motor graders, air compressors, wheel loaders, forklifts, cranes, concrete mixers, and road rollers.
With an eye on the booming East African construction industry, LiuGong will serve the eight member states of the East Africa Community, with a combined Gross Domestic Product (GDP) of USD295 billion, and a fast-growing population currently estimated at 350 million people.
The opening of the offices in Kenya comes at a time when
countries in the region have embarked on huge infrastructure projects.
Kenya is currently preparing to build one of the biggest hydropower dams in Africa, the Sh325 billion High Grand Falls dam project among several other major projects.
Also in the pipeline are 32 smaller dams across various regions, geared to support irrigated agriculture.
Within the region, Tanzania and Uganda have many infrastructure projects lined up, including hydropower stations, gas power stations, road and port upgrades.
According to Guangan Zeng, the Chief Executive Officer of LiuGong Group, the unveiling of the Kenya assembly plant is part of the firm's endeavor to widen its products offering while expanding its market footprint to cover more African countries.
Speaking during the official unveiling of the offices in Syokimau, Zeng revealed plans by the company to team up with a Kenyan university to transfer the mechanical engineering technology, which has propelled the company to global prominence for the last 67 years.
He said the company was bringing to the region the latest equipment in road and dams construction, supported by an after-sales and customer support team.
"We are not only establishing a hub in Kenya for business purposes, but we are keen to support a robust technology transfer so that Kenya also advances with a critical mass of young well-trained engineers, who will drive the manufacturing sector in future," Zeng said.
Zeng also said the company was ready to sink boreholes as part of their corporate social responsibility to address water scarcity in the country as they showcase their technologies.
East African Legislative Assembly MP Kennedy Musyoka urged the company to consider teaming up with technical and vocational educational training institutions in the county.
Machakos Deputy Governor Francis Mwangangi said LiuGong was the latest international company to set up shop in the county, adding that this was a vote of confidence on Machakos county’s growing suitability as an investment destination.
Already, South Eastern Kenya University (Seku) in Kitui County has expressed interest in the partnership with Liugong Machinery East Africa Limited that will expose its School of Engineering students to emerging cutting-edge engineering technologies.
Vice Chancellor Douglas Shitanda said the proposed partnership was a welcome idea and was looking forward to engaging the Chinese investors.
