LiuGong Begins Construction of Heavy Equipment Factory in Karawang
Jakarta (ANTARA) - Chinese heavy equipment manufacturer LiuGong commenced construction of its local production facility in Karawang, West Java Province, on Wednesday (22 July), with an annual capacity of 5,000 units. The project has received government support amid a stark imbalance between domestic demand for heavy equipment and local production capacity.
West Java Governor Dedi Mulyadi, who attended the groundbreaking ceremony, praised LiuGong, saying the presence of a local plant could support the procurement of heavy equipment for both government projects and the business community, making it more affordable. The investment is also expected to boost the local economy through increased regional revenue and job creation.
“The need for heavy equipment is a fundamental requirement in building a nation’s progress. Roads require heavy equipment; opening new rice fields, building lakes, opening mining areas and opening plantation areas all require heavy equipment. There is not a single development project that does not use heavy equipment,” Dedi said in his speech at the ceremony.
In response, Setia Diarta, Director General of Metal, Machinery, Transport Equipment and Electronics Industries at the Indonesian Ministry of Industry, said investment in the domestic heavy equipment sector remains wide open.
Meanwhile, local production capacity has yet to meet the high demand for various types of heavy equipment. Of an estimated requirement of 19,000 units this year, the ministry said local production capacity can only supply 10,000 units annually.
“Heavy equipment is an important subsector that needs to be developed domestically given the huge demand in the infrastructure, plantation, forestry and mining sectors, including the downstream processing of natural resources,” Diarta said.
LiuGong’s production facility occupies a 2.7-hectare site in West Karawang and will comprise three areas: an assembly facility, a fabrication facility, and an area prepared for further expansion in the future. The plant will adopt up to 70 percent automation and up to 30 percent green energy use.
Luo Guobing, Vice Chairman and President of Guangxi LiuGong Machinery, said the project is more than just a manufacturing plant — it is a green and intelligent industrial platform integrating manufacturing, research and development, talent development, and industrial collaboration.
LiuGong has already partnered with at least eight local universities to develop local talent.