LiuGong to Sell Polish Factories, Move Dressta Dozer Production to China

Dressta TD-15M Crawler Dozer

LiuGong is selling its Polish production facilities back to Huta Stalowa Wola, the company it acquired the Dressta dozer line from in 2012, according to a report from Yicai Global, a Chinese financial news outlet.

LiuGong’s acquisition of the Dressta business was its first outright acquisition outside of its domestic market. The company will retain the Dressta brand and its machine sales, parts, and after-sale service business.

Manufacturing of the crawler dozers will be transferred to China, with LiuGong citing a 30 percent reduction in manufacturing costs and greater productivity. The report also noted regional insecurity amid the Russia-Ukraine conflict as a contributing factor for the move.

Huta Stalowa Wola will acquire the land, factories, and factory equipment, as well as all current factory employees.

Liugong is expected to make $17 million from the sale, according to Yicai Global, with the assets valued at around $48.8 million by UK professional services group Ernst & Young, slightly lower than the sales price of $50.4 million that was negotiated by both parties.

LiuGong Machinery (Poland) sp z o.o. served as the European headquarters for the Chinese construction equipment manufacturer. A new regional office will be established for parts distribution and training activities.

After the transaction, Liugong Dressta says it will “focus more on research and development, design and marketing to provide more reliable and tailored solutions for the European market.”