Volvo to Invest in Production Facility Expansion

July 5, 2006
Volvo Construction Equipment last week announced it is investing more than $55 million into its manufacturing facilities in Sweden and the United States to increase articulated hauler, excavator and component production and reduce customer lead times

Volvo Construction Equipment last week announced it is investing more than $55 million into its manufacturing facilities in Sweden and the United States to increase articulated hauler, excavator and component production and reduce customer lead times. Volvo will invest in its facilities in Braas, Hallsberg and Eskilstuna, Sweden, and Asheville, N.C.

With the investment in the Braas facility, Volvo will produce 25 percent more articulated haulers by the end of 2007, increasing output to 4,000 machines. With global demand for articulated haulers at an all-time high, along with expectations that the product will find new users in developing markets, Volvo expects to increase sales of the units. Volvo expects to hire about 100 new employees to help with the additional output.

Investments will also be directed toward increased production at Volvo’s cab factory in Hallsberg, and at its components facility in Eskilstuna, with an emphasis on boosting production of transmission systems.

Volvo’s Asheville factory will begin building excavators as well as wheel loader and excavator cabs by the middle of 2007. The plant will receive a $25 million cash investment to increase its fabrication and assembly capabilities. Volvo operates a core excavator factory in Korea and also has production in China and Germany. The 40,000-square-meter Asheville plant will build four of Volvo’s 11 excavator models and five of 10 wheel loader models.

“This investment helps us to ‘future proof’ us against the increasing demand that we expect for Volvo CE products in the coming years,” said Tony Helsham, Volvo CE president and chief executive. “Not only will we be able to get more of our most popular products into the market, but we will be able to reinforce our responsiveness to customer needs and deliver products faster while still maintaining high quality.”