The new 30,000-square-metre facility will manufacture both electric and combustion-engine crawler excavators.
Volvo Construction Equipment
A symbolic moment of the new factory
Eskilstuna already hosts Volvo CE’s global headquarters, its largest research and development centre, and the sales organization for Europe, Africa, the Middle East, and Oceania, as well as a component factory — making it a central hub for the company’s operations.
With the new factory, Volvo CE will manufacture all of its key products in Sweden: articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna, and cabs in Hallsberg.
“Sweden has been a natural part of Volvo CE’s industrial journey for nearly two centuries, and we are proud to continue making major investments that strengthen both Sweden and Europe on the global stage. By investing in new excavator production in Eskilstuna, we are strengthening our global competitiveness while creating jobs, developing technology, and reinforcing our strong industrial base in Sweden,” said Melker Jernberg, president of Volvo CE.
The growing global demand for crawler excavators
The investment strengthens Volvo CE’s position in an increasingly competitive global market, where excavators represent a large segment within the construction industry. The European market for larger excavators has grown by 50 percent since 2010, and demand is expected to continue to increase.
The new facility in Eskilstuna will cover approximately 30,000-square metres and feature mixed-module assembly for both electric and combustion-engine crawler excavators in weight classes ranging from 14 to 50 tons, with an annual production capacity of up to 3,500 machines. Local production will also result in shorter lead times, reduced supply chain disruptions, and lower transport emissions. Access to excavators is also an important part of society’s civil preparedness.
“Long-term investments in industrial capacity and skills are essential to the competitiveness of both the Volvo Group and Europe. I am very proud of the establishment in Eskilstuna, which strengthens our presence in Europe and contributes to the development of both Sweden and our company,” said Martin Lundstedt, president and CEO of AB Volvo.
The new factory, set for completion in 2028, will enhance the company’s competitiveness and reaffirm Sweden’s role as an industrial nation. The investment is expected to create jobs and drive growth in the Mälardalen region, while also supporting Europe’s innovation and industrial capacity in an increasingly competitive global market.
Read the full article here
