LiuGong gains new ground in North America

The company owns a factory in India and a 16,000 square foot (about 1,500 square meters) parts warehouse and office near Houston, Texas, for better after-sales service.

"The United States attaches huge importance to service in the machinery market. Without an after-sale service, it's pointless discussing the products," said Zeng.

As LiuGong's helmsman who has worked for the company for about 30 years, Zeng has long been an advocate for the company's expansion overseas.

Despite having a relatively small North American market share, he said the company is determined to develop it and will continue to invest there because it is the most important venue for machinery equipment manufacturers globally.

"Southeast Asia is currently our biggest overseas market but North America is the fastest-growing market for the company," he said. "We will maintain this high growth and profit increase."

From a long-term perspective, the North American market will account for 25 percent of LiuGong's total sales revenue in 10 years, according to Zeng.

"It is a must-to-do for Chinese companies to expand to overseas market when they have established their position in the domestic market," he said.

In the past few years, an increasing number of Chinese manufacturers started investing in foreign markets after facing rising costs, fewer orders and a smaller profit margin in the China market.

LiuGong builds bigger global vision

Equipment makers look west