LiuGong Machinery Co., a global construction equipment manufacturer, is expanding its customer leasing and financing program to Europe in a move that builds upon the introduction of the program in North America earlier this year, the company announced.
LiuGong has selected France-based BNP Paribas Lease Group S.A. as its financing partner after the China Export & Credit Insurance Corp., SINOSURE, helped bring the two parties together. The program will be administered by BNP Paribas Leasing Solutions, which is one of four firms in the BNP Paribas Lease Group. Executives from both companies signed the agreement at a conference in Paris in mid-December.
BNP Paribas Leasing Solutions specializes in leasing solutions for professional construction equipment. Its offers a full-range of services from lease financing to outsourcing, and includes flexible and long-term leasing.
“When we announced the first phase of our global financing program in March, we knew we also wanted a strong partner in Europe,” said Zeng Guang’an, LiuGong vice-chairman and president. “BNP Paribas is the number one leasing firm in Europe. It covers all the major LiuGong markets, and they have been extremely cooperative and enthusiastic about this partnership.”
Through the agreement, LiuGong will offer a unified platform to provide high-quality financial leasing services to provide customers with better flexibility and more diversified financial products to meet their financing needs. The program helps LiuGong dealers manage cash flow more effectively, promoting easier investment into their dealership and product line.
The financial products include loans, financial lease/hire purchase, operating leases, and full-service lease/contract hire, among other things. Under the agreement, LiuGong is not liable for loss in a customer default and it does not participate in a risk pool, thus limiting financial exposure.
LiuGong Machinery Corp., headquartered in Liuzhou, China, produces high-quality construction equipment, including wheel loaders, bulldozers, backhoes, skid steers, forklifts, graders, excavators, rollers, truck-mounted and crawler cranes, and pavers. In 2010, LiuGong Machinery reported US $2.32 billion in sales.
