Volvo Construction Equipment last week announced that it will consolidate its manufacturing capacity in the Americas by relocating backhoe loader manufacture from Tultitlán, Mexico, to the company’s production facility in Pederneiras, Brazil.
In a bid to streamline production and gain efficiencies of scale, Volvo CE said it will strengthen its industrial footprint in the Americas by moving the regional production of backhoe loaders from its current production facility, in Tultitlán, Mexico, to a newly enlarged facility in Pederneiras, Brazil. In addition to local production for the Latin American market, backhoes produced in Pederneiras will be exported to North America and other markets.
As part of a $10 million development, the Pederneiras facility will be extended to accommodate production of Volvo backhoe loaders. Critical components will be produced on site, such as dipper, lifting and boom arms, frames and cabs. Ultimately, a significant proportion of backhoe loader content will be either made in-house or sourced locally; supporting the Brazilian economy as well as reducing currency risk and import duties.
“This decision allows us to take advantage of existing competencies and the significant investments we have made in the Pederneiras hub, and further consolidate our industrial footprint in the Americas region,” said Andy Knight, Volvo CE’s president of operations in the Americas.
The move of production to Pederneiras will take place progressively throughout 2013.
Operations at the Volvo Bus manufacturing facility in Tultitlán will continue to concentrate on bus manufacturing.
