Chairman of LGMG: Driving Industry Transformation Through Green Innovation and Shared Success

On May 14, 2025, the China Construction Machinery Association (CCMA) successfully held its 6th Session of the 6th National Member Congress and the 22nd High-Level Forum on Construction Machinery Development in Taiyuan, Shanxi. Under the theme "Embarking on a New Chapter, Expanding New Horizons, Achieving New Accomplishments," the conference focused on high-quality development pathways for the industry, delving into key topics such as green transformation, intelligent upgrading, and global expansion.

Yu Mengsheng, President of Lingong Group and Chairman of Lingong Heavy Machinery, attended the conference and delivered a keynote speech titled "New Challenges, New Perspectives, High-Quality Development—Breaking Barriers and Achieving Win-Win Outcomes in the New Wave." He shared insights on how the construction machinery industry can navigate complex economic conditions to achieve breakthroughs and sustainable growth.

Opportunities and Challenges Coexist Globally, Innovation Drives Breakthroughs

In his keynote speech, President Yu presented a comprehensive analysis of the global construction machinery market landscape. He noted that while the global economy is steadily recovering amidst multiple challenges, emerging Asian markets and developing economies have become the primary growth drivers.

According to IMF projections, although global economic growth has been revised down to 2.8% for 2025, emerging Asian markets maintain strong momentum. Infrastructure demands from Belt and Road countries in particular are injecting vitality into the industry. The Chinese construction machinery sector shows positive trends as well, with first-quarter export figures demonstrating significant growth and the Construction Machinery Index (CMI) continuing its upward trajectory - clear signals of robust recovery.

However, President Yu cautioned that challenges persist, including geopolitical conflicts, technological barriers, and trade protectionism. He emphasized that only through innovation to break bottlenecks and collaboration to overcome internal competition can the industry achieve the critical transition from quantity-driven to quality-driven growth.

Notably, driven by carbon neutrality goals, China's construction machinery sector has entered the fast lane of electrification and digital-intelligent transformation. New energy and smart technologies are emerging as core engines for leapfrog development, positioning Chinese manufacturers at the forefront of this industrial revolution.

Green Transformation: From Technological Breakthroughs to Full-Chain Implementation

Currently, the electrification rate of aerial work platforms in China has exceeded 90%, while the transition from diesel to electric in forklifts and loaders is progressing much faster than anticipated. Industry projections indicate 2025 will witness peak sales of electrified products, with the entire sector accelerating its strategic shift toward new energy solutions.

Addressing this trend, President Yu highlighted Lingong Heavy Machinery's leadership in pure-electric technology innovation. The company has pioneered hybrid products achieving 30-50% energy savings and established zero-emission manufacturing facilities, fulfilling its green mission while driving industry-wide sustainable transformation. Beyond technological advancements, Lingong has integrated ESG principles into industrial development through initiatives like mine rehabilitation and targeted poverty alleviation.

"Green development transcends technological innovation—it embodies corporate social responsibility," stated President Yu. "We are committed to leveraging green innovation as our engine, contributing the 'Lingong Solution' to global decarbonization efforts."

Going Global: Competing Through Value

The rapid growth of China's construction machinery exports fundamentally reflects industrial upgrading. President Yu noted that while leading Chinese manufacturers have achieved remarkable performance in overseas markets, the industry must transition from "price wars" to "value competition" by enhancing brand premium through technological reliability and service standardization.

He emphasized the need for proactive risk management to establish robust safeguards for global expansion. Addressing international challenges like exchange rate fluctuations and legal compliance risks, Lingong Group has implemented strategic countermeasures including:

-Diversified market deployment

-Financial hedging instruments

-Strengthened compliance management systems

Symbiotic Growth: Breaking Internal Competition to Rebuild the Ecosystem

Breaking the Zero-Sum Game: Building a Symbiotic Future for the Construction Machinery Industry

Facing industry challenges like price wars and overcapacity—symptoms of "internal involution" (neijuan)—President Yu called for establishing a "symbiotic win-win" ecosystem. He proposed that industry associations lead in setting minimum pricing standards for overseas markets, drawing lessons from the EU-China EV pricing mechanism to curb cutthroat competition.

To transcend this race-to-the-bottom, Yu emphasized:

*Deepening niche markets (e.g., aftermarket services, leasing, remanufacturing)

*Collaborative R&D ecosystems, as demonstrated by Lingong’s intelligent mining solutions

*"Technology leadership + responsible stewardship" as dual drivers to shift from internal attrition to collective growth

"The world is vast enough for all to thrive," Yu asserted. "Only through open collaboration—sharing technology and synchronizing markets—can we contribute China’s sustainable strength to global infrastructure."

The Path Forward
China’s construction machinery sector is now embracing a new era of high-quality development, where:

*Innovation is the spearhead

*Collaboration is the shield

*Green transition lays the foundation

*Global synergy replaces zero-sum games

Lingong Group pledges to advance its mission of "pioneering technology with accountability", propelling Chinese brands onto the world stage and redefining industry success.