Liebherr predicts 'consolidation phase' in 2009

Speaking at Bauma China, Winfried Boehm, member of the board of directors of Liebherr-International, said that finance was the root of the problem.

"The finance market crisis has jumped across to Europe, South America and Asia, and is already beginning to have adverse affects on the real economy.

"This is currently becoming evident within the Liebherr group as a reluctance to invest on the part of a number of customers, since the necessary finance is not available to them to the same extent, or in some cases the cost of obtaining it has greatly increased. As a result, demand has dropped in certain markets, although this naturally depends on the product area concerned. The trend is exacerbated by general economic weaknesses in certain countries.

"As you can imagine, it is extremely difficult at this juncture to make a detailed forecast for 2009. Following the dynamic growth phase of the past five years - from 2003 to 2008 our group's turnover doubled - a consolidation phase is likely to set in from next year onwards."

Boehm did say that the company's workforce had grown compared to 2007, as well as other investments. In the first six months of 2008, Liebherr Group turnover increased to EUR 3.864bn, up 10.7% over the same period in 2007.

In terms of cranes, the divisional controlling company for all-terrain cranes and crawler cranes above 300t capacity, Liebherr-werk Ehingen, currently employs 2,900 people and has finished a new crawler crane assembly hall, 216m long, 90m wide, with a capacity for 150 units per year in single-shift production, according to managing director Christoph Kleiner.

"Our continuous investment into our production facilities in the recent years has enabled us to considerably enhance our production programme. Three years ago, we produced 1,200 cranes per year. In 2008 as a whole we expect to deliver 1,800 cranes to the world market," Kleiner said.

"The largest markets for sales of Liebherr all terrain mobile cranes and crawler cranes (over 300t capacity) in 2008 are Germany, Spain, Great Britain, the USA and France. China is our most important Asian market.

"During the current business year, we are involved in a large number of projects in China. I would like to highlight two of them. Presently the 1,350t Liebherr LR 11350 crawler crane is working in Qingshan at the nuclear power station. Only a few days ago it lifted the 180t dome to a height of 80m at a radius of 46m. In December two LR 11350s will lift a 1,700t reactor in Guanxi. Both cranes will be equipped with 66m main boom and derrick system.

"To conclude my remarks, some words about our division's exhibit at Bauma China.

The LTM 1500-8.1 is an eight-axle all terrain crane equipped with a seven-section 84m telescopic boom which provides outstanding lifting height and outreach. Its maximum lifting capacity is rated at 500t.

"The crane was first introduced 10 years ago. Only recently, in September 2008, Liebherr delivered the 200th unit of the LTM 1500-8.1 to a German customer.

"Also China was an excellent market for the LTM 1500; we have delivered 12 units over the last few years and for 2009 another three units are on order.

"As an alternative to the 84m telescopic boom, the LTM 1500-8.1 can travel with a four-section, 50m compact boom. This allows the crane to be transported on roads with a 12t axle load limit without removing the boom. Lifting heights up to 145m are possible with lattice jib. Increases of up to 250% in load capacity can be achieved by guying the boom with the Y-shaped suspension system.

Stefan Gilch, managing director of Liebherr Machinery Service (Shanghai) also announced at Bauma China that Liebherr is supporting a project to reconstruct a 120-bed old people's home in Liujiaba, 5km from Gucheng, which was damaged in the earthquake earlier in the year.