In a major industry development, ELB Equipment, one of the largest earthmoving, mining and construction equipment suppliers in southern Africa, announced the signing of an exclusive agreement to distribute and support the full range of LiuGong’s earthmoving and construction equipment in the region.
The dealership agreement, confirms Kardolus, covers South Africa and neighbouring countries, initially Namibia, with future plans for expansion into other southern African countries. The agreement took effect in December 2024, with operational plans already being executed and team integration underway to ensure a seamless transition.
“Following the announcement of the distributorship agreement, our immediate focus is to integrate LiuGong into our operations,” says Kardolus. “This includes onboarding LiuGong personnel at ELB, training our sales and service teams, as well as rolling out marketing initiatives to create awareness. We are also working on optimising our infrastructure to support LiuGong equipment, ensuring that our customers receive the high-quality service they have come to expect from ELB.”
Why LiuGong?
Commenting on what influenced the decision to opt for LiuGong, Kardolus tells Quarrying Africa that the Chinese original equipment manufacturer’s (OEM) reputation for manufacturing durable, high-performance machinery at competitive pricing played a significant role in ELB’s decision to add the range to its extensive offering.
“Additionally, LiuGong’s commitment to innovation, strong global presence and excellent aftermarket support align with ELB’s strategy to provide reliable and cost-effective solutions to our customers. LiuGong’s expanding footprint in the global equipment market also matches our growth aspirations in southern Africa,” says Kardolus.
LiuGong’s business model of forging long-term relationships with its dealer partners was another attribute that matched ELB Equipment’s operating model. To provide context, LiuGong has partnered with its previous dealer for about 20 years, while ELB Equipment has distributed some of its OEM brands for extended periods, with Powerscreen, Furukawa and Sumitomo all having been part of the company’s stable for over 40 years.
Developments in the automotive sector, adds Kardolus, where Chinese automotive brands have become formidable global competitors through improved designs that incorporate advanced technology, sleek exteriors and well-appointed interiors, are a precursor of what is likely to happen in the construction equipment sector. “I believe that developments in the automotive environment today have set the tone of what we should expect in the construction space in the next two to three years,” he says.
Full line
As part of the agreement, ELB will distribute and support the full range of LiuGong construction and earthmoving equipment, including wheel loaders, excavators, bulldozers, graders, backhoe loaders, mining trucks, as well as compact and compaction equipment.
ELB will also support existing LiuGong equipment supplied by both the previous dealer and LiuGong Southern Africa. LiuGong’s existing customer base, he says, can rest assured that ELB Equipment will uphold the quality and reliability that they have come to expect from the LiuGong brand. With its robust infrastructure – 11 branches, six sub-dealers and dedicated service teams strategically located across South Africa alone – ELB is well-equipped to support LiuGong’s growing footprint.
Leveraging its established support infrastructure in the region, ELB is expanding the LiuGong offering through the provision of other lines that were previously not available to the local market, including pneumatic tyre rollers and asphalt pavers, amongst others.
The addition of the LiuGong range also allows ELB to close some crucial gaps in its offering, particularly in the mid-market segment, providing customers with durable, versatile and affordable equipment options. It also enhances ELB’s ability to offer comprehensive solutions to its customer base with the addition of mining trucks.
“Previously, we did not offer any mining trucks, which we felt was a limiting factor to our ability to provide a full line of solutions to our customers. With the addition of LiuGong’s wide body trucks (90-t and 100-t models) and a 100-rigid dump truck – the most prominent size in the contract mining sector – we have closed the gap in our product line-up,” says Kardolus.
Apart from mining trucks, Kardolus is excited about the addition of the LiuGong 856H wheel loader to the ELB stable, which he believes is one of the flagship LiuGong products in the market. Over the years, the 856H has gained popularity in southern Africa, demonstrated by a strong installed base across commodities.
The 22-tonne LiuGong 922E excavator is another model which Kardolus believes stands out, based on the high uptake of the machine in the local market. “The proven performance of the two machines in harsh conditions, coupled with innovative designs and advanced technology, makes them exciting additions to the ELB portfolio,” says Kardolus.
Complementary additions
ELB’s approach is to ensure that all brands within its portfolio “remain distinct yet complementary”. Ultimately, customer satisfaction and loyalty will guide the company’s strategy for positioning LiuGong alongside existing offerings.
Kardolus is very optimistic about this partnership. LiuGong’s strong product line-up, he says, combined with ELB’s established presence and customer relationships in southern Africa, creates a synergistic platform for success. He believes that this collaboration will drive significant growth, expand ELB’s market share and strengthen its reputation as a leading provider of earthmoving and construction equipment in the region.
“This partnership marks a pivotal moment for ELB Equipment. By aligning with a globally respected brand of LiuGong’s stature, we are reinforcing our commitment to delivering innovative and reliable solutions to our customers. We look forward to showcasing the advantages this collaboration will bring to the construction and mining industries across southern Africa,” concludes Kardolus.
