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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 .
Yahoo
24-06-2025
- Automotive
- Yahoo
Volvo Construction Equipment acquires Swecon
GOTHENBURG, Sweden, June 24, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) has come to an agreement with Lantmännen to acquire the Swecon's business operations in Sweden, Germany and the Baltics including Entrack. Volvo CE will pay 7 billion SEK for the acquisition, which is subject to regulatory approval. Closing of the deal is anticipated in second half of 2025. The acquisition includes Swecon's business scope in these markets, i.e. sales of products and services, rental operations, aftermarket services & support to customers as well as offices, workshop facilities and 1,400 employees. Volvo CE sees this as a strategic move to further invest in retail operations in key markets; Germany, which is Europe's largest construction equipment market, Sweden, Volvo CE´s home market as well as Estonia, Latvia and Lithuania. In addition to the currently owned retail operations footprint, this acquisition will mean Volvo CE will own and manage the majority of the company´s business in Europe, making retail core for Volvo CE in Europe. "At this time of transformation of our industry where our competitiveness is put to test, directly collaborating with our customers is even more important to be successful, and through the acquisition of Swecon we believe we can drive an enhanced customer satisfaction", says Melker Jernberg, Head of Volvo CE. Lantmännen is an agricultural cooperative with diverse activities in agriculture, energy, food and machinery. For the full year of 2024 Swecon revenues amounted to 10 billion SEK. Entrack is a provider of aftermarket products, independently and fully owned by Lantmännen. June 24, 2025 Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm. This information was brought to you by Cision The following files are available for download: Press Release - Volvo Construction Equipment acquires Swecon 2025-volvo-flags View original content: SOURCE AB Volvo
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
24-06-2025
- Automotive
- Yahoo
Volvo Construction Equipment acquires Swecon
GOTHENBURG, Sweden, June 24, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) has come to an agreement with Lantmännen to acquire the Swecon's business operations in Sweden, Germany and the Baltics including Entrack. Volvo CE will pay 7 billion SEK for the acquisition, which is subject to regulatory approval. Closing of the deal is anticipated in second half of 2025. The acquisition includes Swecon's business scope in these markets, i.e. sales of products and services, rental operations, aftermarket services & support to customers as well as offices, workshop facilities and 1,400 employees. Volvo CE sees this as a strategic move to further invest in retail operations in key markets; Germany, which is Europe's largest construction equipment market, Sweden, Volvo CE´s home market as well as Estonia, Latvia and Lithuania. In addition to the currently owned retail operations footprint, this acquisition will mean Volvo CE will own and manage the majority of the company´s business in Europe, making retail core for Volvo CE in Europe. "At this time of transformation of our industry where our competitiveness is put to test, directly collaborating with our customers is even more important to be successful, and through the acquisition of Swecon we believe we can drive an enhanced customer satisfaction", says Melker Jernberg, Head of Volvo CE. Lantmännen is an agricultural cooperative with diverse activities in agriculture, energy, food and machinery. For the full year of 2024 Swecon revenues amounted to 10 billion SEK. Entrack is a provider of aftermarket products, independently and fully owned by Lantmännen. June 24, 2025 Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm. This information was brought to you by Cision The following files are available for download: Press Release - Volvo Construction Equipment acquires Swecon 2025-volvo-flags View original content: SOURCE AB Volvo 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
