Liugong Leads Chinese Equipment Manufacturing Intelligent Leap with Nearly 30% Efficiency Gain(Nov 5)

Liugong Leads Chinese Equipment Manufacturing Intelligent Leap with Nearly 30% Efficiency Gain

Since 2021, Liugong has actively responded to the national "14th Five-Year Plan" for intelligent manufacturing development and the construction machinery industry's intelligent transformation requirements, launching large-scale intelligent upgrades across more than ten product lines including wheel loaders and excavators. Currently, Liugong has built intelligent factories for wheel loaders and smart factories for excavators, with automation equipment accounting for over 85%. The wheel loader intelligent factory shortened manufacturing cycles by 50%, improved production efficiency by 27%, and increased capacity by 18%. The excavator smart factory increased overall capacity by 45%, shortened order response cycles by 45%, and achieved an annual capacity of 20,000 units. In the recently announced 2026 Excellence-Level Intelligent Factory Project list by the Ministry of Industry and Information Technology, both Liugong's wheel loader intelligent factory and excavator smart factory were selected.

Oil-Electric Hybrid Flexible Production

Particularly noteworthy is Liugong's innovative oil-electric hybrid flexible production technology, which pioneered mixed oil-electric assembly on the same production line for both wheel loader and excavator product lines. This innovation not only reduces duplicate investment but also shortens product delivery cycles, significantly enhancing Liugong's and the entire industry's responsiveness to market demand. Liugong's intelligent manufacturing capabilities continue to lead the industry, providing a replicable "Liugong Model" for Chinese equipment manufacturing to participate in global competition.

Excavator Smart Factory

Liang Kunrui, Digital Director of Liugong's Excavator Division Intelligent Manufacturing Research Institute, told China Industry News that the factory's four production lines can efficiently and intelligently produce medium excavators, large excavators, ultra-large excavators (covering 90-ton and above products), and customized products, with overall production efficiency improved by nearly 30%. In March this year, the factory produced 1,553 excavators in a single month, a year-on-year increase of 77.5%, setting a record for single-month capacity.

Full Value Chain Capability Reshaping

"Liugong's intelligent manufacturing transformation is by no means simple equipment iteration or basic automation substitution, but a full value chain systematic capability reshaping based on customer and global market needs, supported by digital intelligence technology upgrades," said Luo Guobing, President of Liugong Co., Ltd., in an interview with China Industry News. This reshaping covers four dimensions: R&D and design, manufacturing and supply chain, delivery and service, and foundation and support.

In R&D and design, Liugong redefines products and services through the "Five Modernizations" trend of electrification, digitalization, connectivity, automation, and sharing. Through LDP (Liugong New Product Development Process), customer needs are translated into product design and development. Leveraging large model and digital twin technologies, the new product development cycle was shortened from 46 months to 29 months, with product reliability improved by over 30%.

In manufacturing and supply chain, Liugong integrated product information flow, order flow, and physical flow. Through the SRM system, Liugong grasps the full supply chain picture in real time, enabling precise demand forecasting, inventory management, and procurement optimization. The comprehensive application of multiple digital management systems improved operational efficiency by an average of 20%-30%.

AI-Powered Service

In delivery and service, Liugong is shifting from selling equipment to providing full-lifecycle services and comprehensive solutions. As a core achievement of "Liugong AI 2.0" in the service domain, the AI maintenance large model "Liu Xiao Yuan" can quickly perform autonomous fault diagnosis and localization. After deployment, product fault diagnosis accuracy exceeded 87%, repair efficiency improved by 14%, unplanned equipment downtime was reduced by over 20%, and work order review efficiency improved from 13 days to minute-level.

Green Manufacturing

Liugong has built a total installed capacity of 53.85MW of factory-area photovoltaics. Combined with market-based green electricity trading, annual clean energy carbon reduction reaches nearly 70,000 tons, with renewable energy usage proportion increased to 32.3%. Liugong's Wind ESG rating was upgraded to AA level, ranking fifth among domestic machinery companies and first in the construction machinery industry.

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