Latest news with #MelkerJernberg
Time of India
25-06-2025
- Business
- Time of India
Volvo sells stake in China's SDLG in strategic revamp
HighlightsVolvo Group announced the sale of its 70% stake in Shandong Lingong Construction Machinery Company to a fund controlled by Lingong Group for 8 billion Swedish crowns ($837 million). Volvo Group will acquire the business operations of engineering consultancy Swecon in Sweden, Germany, and the Baltics for 7 billion crowns ($731 million), enhancing its control over its European construction equipment business. The decision to exit Shandong Lingong Construction Machinery reflects the challenges in China's declining construction market, while the acquisition of Swecon allows Volvo to focus on premium brands amid changing consumer demand and trade tensions. Volvo Group on Tuesday said it would sell its 70% stake in China's Shandong Lingong Construction Machinery Co ( SDLG ) and buy its European construction equipment supplier Swecon as it looks to refocus on core brands. Volvo said that its construction equipment (CE) unit would sell the stake to a fund controlled by minority partner Lingong Group for 8 billion Swedish crowns ($837 million). In a separate statement Volvo said that it would buy engineering consultancy Swecon's business operations in Sweden, Germany and the Baltics for 7 billion crowns ($731 million). Volvo is focusing on premium and more customer-focused brands, tightening control over its European business while stepping back from China's mid-market while the industry grapples with changing consumer demand and trade tensions . "With increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus," Melker Jernberg, head of Volvo CE, said in a statement on the Chinese transaction. Volvo shares were up 2.3% in mid-morning trade. Volvo CE accounted for 17% of group revenues in 2024, while SDLG contributed around 2%, the company said. With Swecon under full ownership, Volvo will be able to manage the majority of its European construction equipment business directly, said Bernstein in a note to clients. Analysts said the exit from SDLG reflects the broader challenges of operating in China's slumping construction market, while the Swecon deal boosts Volvo's control in Europe. Mounting debt from Chinese property developers has dragged down real estate prices and triggered a construction downturn, hitting demand for heavy machinery .
Reuters
24-06-2025
- Business
- Reuters
Volvo Construction Equipment to sell stake in China's SDLG for $837 million
COPENHAGEN, June 24 (Reuters) - Volvo's ( opens new tab Construction Equipment (CE) unit said on Tuesday it will sell its 70% stake in China's Shandong Lingong Construction Machinery Co to a fund primarily owned by minority owner Lingong Group for 8 billion Swedish crowns ($837 million). In a separate statement, Volvo CE said it had agreed to buy engineering consultancy company Swecon's business operations in Sweden, Germany and the Baltics for 7 billion Swedish crowns ($731.45 million). "With increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus," Melker Jernberg, head of Volvo CE, said in a statement on the Chinese transaction. ($1 = 9.5583 Swedish crowns)
Yahoo
13-06-2025
- Automotive
- Yahoo
Volvo to expand US construction equipment production
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Volvo Construction Equipment said it will begin producing crawler excavators and large wheel loaders at its Shippensburg, Pennsylvania, facility as part of a larger global investment to meet growing demand for its heavy machinery. The Volvo Group subsidiary plans to invest $261 million to expand crawler excavator production across three sites, including Shippensburg; Changwon, South Korea; and a location in Sweden, according to an announcement this week. The Shippensburg location, which currently manufactures soil and asphalt compactors, as well as midsize wheel loaders, will also add four large wheel loader models to its production, Volvo CE said. The upgrades are expected to be ready in the first half of 2026. Volvo CE is moving forward with its investment after a period of slow sales impacted by market uncertainty. Construction equipment makers Caterpillar and Deere, which have strong footholds in the U.S., have also struggled with lower demand and are investing in ways to support workforce development and upgrades to existing facilities. Volvo CE, which recently brought to market a new line of haulers and excavators, saw first quarter global sales drop 8% to 21.12 billion Swedish kronor ($2.2 billion) compared to last year. Sales volume declines in Europe and North America offset growth in Asia and South America markets. Despite the shortfall, the company reported improved service sales and an overall increase in orders and deliveries. 'As a global company we are understandably affected by these turbulent times, but we have shown resilience in the face of uncertainty,' Melker Jernberg, head of Volvo CE, said in an April 23 statement. 'Our industry's transformation may be slower than we would like, but our commitment remains strong as we continue to invest into building a better world for all.' Part of the reason for Volvo CE's excavator expansion is to mitigate supply chain risks as tariffs pressure companies to reevaluate their operations and network of suppliers. The company said the $261 million investment will help it 'reduce dependency on any single site' and become 'less reliant on long-distance logistics.' Volvo CE also plans to mitigate risks by expanding its domestic supplier bases, which would allow it to 'more nimbly manage any economic and regulatory challenges,' the company said. 'This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth,' Scott Young, president and head of Volvo CE's North America region, said in a statement. In addition to more factory lines, Volvo CE plans to integrate more automation technologies into its manufacturing process and upskill its workers as part of the investment. A spokesperson did not provide details about the technology upgrades prior to press time. Volvo CE acquired the Shippensburg facility in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. Separate from the machinery expansion, the company has pledged to invest $40 million in the central Pennsylvania area over the next five years. Recommended Reading Volvo to receive $208M to accelerate heavy-duty electric truck production
Yahoo
11-06-2025
- Automotive
- Yahoo
Volvo CE to invest $260.3m in crawler excavator production across three global sites
Volvo Construction Equipment (Volvo CE), a division of the Volvo Group, has unveiled a strategic global investment plan to bolster its crawler excavator production. The initiative, which aims to meet increasing customer demands, will enhance the company's operational efficiency and resilience by localising production and reducing dependency on long-distance logistics. The investment, totalling approximately Skr2.5bn ($260.3m), will be distributed across three primary production locations in South Korea, Sweden, and North America, with the largest allocation earmarked for the Changwon factory in South Korea. These investments are scheduled to be made over the forthcoming years. This strategic move is set to significantly increase capacity and flexibility, enabling Volvo CE to effectively meet both current and future customer needs. By establishing production capacity closer to key markets, the company anticipates shorter delivery times and the ability to offer solutions tailored to regional requirements. This approach also serves to lower supply chain risks and manage economic and regulatory challenges more adeptly. Furthermore, the investment is expected to lower carbon emissions by minimising transportation distances and fostering closer collaboration with local suppliers and customers. Volvo CE head Melker Jernberg said: "We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better. "This investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers." The Changwon site in South Korea will undergo upgrades to secure global volumes and capabilities within Asia. In Europe, Sweden has been chosen for the production of crawler excavators, with the final decision on location, scope, and timing to be made later in 2025. Additionally, an excavator assembly line will be installed in the existing factory in Shippensburg, US, to cater to the North American market. The Changwon factory is a key component in Volvo CE's global industrial network, holding essential competencies in manufacturing, product development, and purchasing. "Volvo CE to invest $260.3m in crawler excavator production across three global sites" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
11-06-2025
- Automotive
- Korea Herald
Volvo Construction Equipment to expand Korean plant
Swedish heavy machinery builder commits largest share of $264m global investment to Changwon factory in South Gyeongsang Province Volvo Construction Equipment has decided to expand and upgrade its Korean production site in Changwon, South Gyeongsang Province, as the Swedish heavy machinery manufacturer looks to better cope with growing customer demand worldwide. According to Volvo CE on Wednesday, the company will invest approximately $264 million to bolster its crawler excavator footprints at three main production sites in Korea, Sweden and North America. The largest share of the investment is slated for Korea's Changwon factory. Although the allocation of funds between the sites was not disclosed, the company said the investments would be carried out over the coming years. Volvo CE said the investment plan includes upgrading the Changwon site to secure global volumes and capabilities in Asia while leveraging supply chain capabilities to enhance efficiency, reduce costs and improve responsiveness to market demands. Volvo CE also pointed out that the Changwon plant remains an important factory in the company's global industrial network as it holds key competencies for manufacturing, product development and purchasing. The Changwon plant, which exports over 80 percent of the total production, has the biggest excavator manufacturing capacity within the Volvo Group worldwide. For the rest of the investments, Volvo CE said the final decision regarding the location, scope and timing for the Swedish expansion will be made later this year. The company will set up an excavator assembly line at its existing factory in Shippensburg, Pennsylvania, for the North American market. By adding production capacity near key regions, the heavy machinery maker expects to improve operational efficiency and resilience while ensuring shorter delivery times and offering customized solutions for regional needs. The global expansion is also aimed at lowering carbon emissions by minimizing transportation distances, the company said. "We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better," said Melker Jernberg, head of Volvo CE. "This investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers."
