Shandong Lingong Opens Brazil Production Base

Another local construction machinery brand "to the sea." Yesterday, Volvo Construction Equipment Group announced in Shanghai that its subsidiary Shandong Linggong was preparing to build a production base in Sao Paulo, Brazil, and produce four excavators, which are expected to be put into operation in 2013.

Olney, president of Volvo Construction Equipment Group, said that since Shandong Lingong opened up the Brazilian market in 2009, it has achieved remarkable results. The wheel loader has been introduced to the Brazilian market. After the excavator has achieved local production in Brazil, it means that the weight of Brazil’s market share in the temporary labor market has further increased. At present, the export volume and market share of Lingong’s construction machinery products in Brazil ranks among the top among Chinese brands.

Volvo Construction Equipment Group has implemented the dual-brand strategy of "Volvo" and "Lingong" since it acquired Linggong in 2006. The two brands sold a total of 36,000 units in the first 10 months of this year, occupying a market share of 13.7% in the Chinese market and more than 180 dealers across the country. Up till now, Volvo CE has invested a total of RMB 1 billion in the Chinese market to expand its production capacity and enrich product lines.

In view of the current sluggish construction machinery market this year, Olney said that even so, China is still the world's largest market and is also the core market of Volvo Construction Equipment Group. He expects the growth rate to be relatively flat next year and will improve in the second half of the year.

Chlorofluorocarbons (CFCs) have been used extensively in last five or six decades as refrigerants in the vapor. compression cycle to produce refrigerating and air-conditioning effects. In recent years it has been found that CFCs are most destructive to the environment. It has been proved that CFCs are a major cause of depletion of the earth`s stratospheric ozone layer and contribute to the greenhouse effect (global warming).Presently large quantities of CFCs are being used as refrigerants in a number of refrigerating and air-conditioning systems. Though the refrigerant moves in a closed cycle, there are lots of leakages that escape to the atmosphere and cause destruction of the ozone layer. The most shocking fact about CFCs is that they have exceptionally long atmospheric life which, in certain cases, even extends to 100 years. This means that if CFC refrigerants are leaked in the atmosphere, they will keep depleting ozone layer for the next 100 years to come.

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