Volvo Construction Equipment will invest $10 million to build a new manufacturing facility in Brazil for its SDLG-branded machines, the company said this week. The investment in Pederneiras, Sao Paulo state, will include the establishment of a new entity called SDLG America Latina.
The new facility will share the site of Volvo CE’s existing manufacturing complex in Pederneiras, but will be separate and solely dedicated to manufacturing SDLG machines. Volvo said work on the factory has begun and that four SDLG models of tracked excavators will roll off the production lines beginning in the middle of 2013.
The four models will range between 13.8 and 24.3 tons. The company expects to produce about 120 units in 2013, taking into account its likely mid-year start. Volvo said demand for construction equipment is forecast to grow rapidly in Brazil and throughout Latin America, and the local production will help reduce lead times.
SDLG will continue to operate as an independent brand, with its own dedicated organization, identification, distribution network, sales force and technical structure.