Guangxi LiuGong Machinery Co Ltd and United Overseas Bank Ltd have renewed their memorandum of understanding to facilitate machinery financing for LiuGong’s customers as it expands its business across Southeast Asia, the companies said.
LiuGong and UOB have been collaborating since July 2018 to extend machinery financing solutions for LiuGong’s vendors and customers in the region.
Under the terms of the new MoU, UOB will develop an end buyer financing credit framework and offer asset financing and hire purchase or lease financing to LiuGong’s customers in Indonesia and Thailand. The bank will also provide LiuGong’s supply chain with other financial solutions such as cash management, trade finance, working capital loans and hedging facilities, the company said.
“The financing support for LiuGong’s customers will help the company drive the export of its construction equipment to the region, thereby growing its revenue,” LiuGong said.
Zeng Guang’an, Chairman of LiuGong Group, said of the MoU: “LiuGong is excited to continue its partnership with UOB. As LiuGong continues to expand our overseas business, one of our key goals is to provide customers with complete solutions beyond our machinery and financing is a large part of these offerings. UOB gives us this opportunity in Southeast Asia.”
Chen Hao, President of LiuGong Machinery Asia Pacific Pte Ltd, said the consumption rate for LiuGong’s machinery in Southeast Asia has been strong.
“For LiuGong, we are constantly listening to our customers and providing what they need, offering reliable machines with excellent after sales services,” he said. “Our customers told us that they require machinery financing assistance, we are happy to work with UOB to tailor made financing plans to them thus providing a total solution for them.”
Ronny Chng, Head of Corporate Banking Overseas, UOB, said the bank was committed to providing “integrated financial solutions that help companies optimise their business operations and expand across borders”.
He added: “Our unrivalled regional network connectivity, deep market insights, industry knowledge and strong expertise in supply chain financing enable us to support LiuGong as it expands its distribution network and increases its market share in Southeast Asia. We hope to work with more manufacturers from China to facilitate their growth plans in the region.”
The MoU was signed at the New International Land-Sea Trade Corridor Introduction and Marketing Conference, organised by the People’s Government of Guangxi Zhuang Autonomous Region.
The signing was witnessed by Chinese Communist Party Secretary of Guangxi Zhuang Autonomous Region, Lu Xinshe, and Wee Ee Cheong, Deputy Chairman and CEO, UOB.