Volvo CE boss highlights company success in China

Volvo Construction Equipment (Volvo CE) has invested over US$150.93 million (SEK1bn) in expanding capacity and construction equipment offering in China and had secured a leading position in national wheeled loader and excavator sales, said Volvo CE president Pat Olney. The Swedish construction equipment manufacturer is also keen to develop its SDLG brand, which, Olney stressed, has helped Volvo CE secure its status in the Chinese wheeled loader and excavator market.
January 6, 2017 Read time: 3 mins
Pat Olney, chief exec Volvo CE explained that the firm has been highly successful in building sales in China with its dual brand strategy - Volvo and SDLG

Volvo Construction Equipment (359 Volvo CE) has invested over US$150.93 million (SEK1bn) in expanding capacity and construction equipment offering in China and had secured a leading position in national wheeled loader and excavator sales, said Volvo CE president Pat Olney.

The Swedish construction equipment manufacturer is also keen to develop its SDLG brand, which, Olney stressed, has helped Volvo CE secure its status in the Chinese wheeled loader and excavator market.

Speaking during a press conference at bauma China 2012, Olney said: “It shows the strength and success of our dual brand strategy in China.”

Olney emphasised Volvo CE’s decade-long “investment and commitment” to the Chinese marketplace, and spoke of changing customer needs in the country, highlighting the increased preference for a wider range of solutions, used equipment, remanufactured parts and Volvo Financial services. These services are said by Olney to be being delivered to customers across China from an expanding network of clearly differentiated Volvo and 5316 SDLG sales and service branches.

Highlighting the variety of construction equipment available from the Volvo and SDLG (Lingong) brands, he added: “We have almost 300 different models of construction equipment between our two brands across the globe and, importantly, we offer a very extensive array of after sales support through our independent dealers throughout the world to support our customers.”

Olney said that such had been the success of the SDLG brand in Brazil that four models of SDLG excavator will be locally manufactured from 2013. Production will begin at a newly built SDLG facility in Pederneiras, São Paulo state, initially making four excavator models, the LG6150E, LG6210E, LG6225E and LG6250E.

On the impact of Chinese market conditions on Volvo CE’s Q3 2012 performance, Olney said: “The third quarter was a more difficult quarter for us. You could say that even though the Chinese market had been slowing, we continued to drive strong revenues in the Chinese market in the first half of the year. That was due to the fact that the mining industry continued to work and our customers continued to order, in particular, heavy equipment from us. In the third quarter we saw a very sharp slowdown which was affected by the temporary shutdown of the mines in China, but, in addition, we saw a general market slowdown in other parts of the world.”

Olney said that China remained “by far the biggest” market for the global construction equipment industry and that 2012 would still be the third best year in [equipment sales] history in the Chinese market.

“Our outlook for next year is for China to be relatively flat, but with growth coming in the second half,” added Olney.

%$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 www.VolvoCE.com false http://www.volvoce.com/ true false%>

For more information on companies in this article

Related Content

  • New grader available from SEM
    November 30, 2012
    The SEM 922 grader is aimed at sales into the Chinese market and for use by contractors carrying out large earthworks projects. Equipped with all-wheel-drive, the SEM 922 is said to be able to achieve high tractive effort in poor underfoot conditions or on wet terrain. It also has a steering compensation system that provides more control when turning under full power, minimising tyre scrubbing at the front axle and also reducing damage to any freshly graded surface. Dual displacement motors are said to maxi
    Read More
  • New design for Volvo P6870C ABG wheeled paver
    January 6, 2017
    The new Volvo P6870C ABG wheeled paver with its Stage IIIB-certified engine and a new design is said to now be quieter, more productive, and be up to 30% more fuel efficient while reducing CO2 emissions. A new fume extraction system, set to be available on the P6870C later in 2013 (and already available on Volvo’s tracked pavers), is said to remove bituminous fumes from the working environment at 83% efficiency without significantly increasing fuel consumption, noise or obstructing the operator’s view into
    Read More
  • New design for Volvo P6870C ABG wheeled paver
    February 12, 2013
    The new Volvo P6870C ABG wheeled paver with its Stage IIIB-certified engine and a new design is said to now be quieter, more productive, and be up to 30% more fuel efficient while reducing CO2 emissions. A new fume extraction system, set to be available on the P6870C later in 2013 (and already available on Volvo’s tracked pavers), is said to remove bituminous fumes from the working environment at 83% efficiency without significantly increasing fuel consumption, noise or obstructing the operator’s view into
    Read More
  • Dynapac introduces new compaction equipment
    January 6, 2017
    Focussing on advanced compaction and paving equipment, Atlas Copco Road Construction Equipment Division highlights a number of new products “We have been working hard and determent, listening carefully to our customer’s needs and present a great range of new and updated products.” says Herman Matthyssen, vice president marketing west. “Up-time, ergonomics, reliability and serviceability are key success factors nowadays."
    Read More

Highlighted Content