Volvo CE is moving production of backhoe loaders and graders

Volvo CE has announced it is moving production of its backhoe loaders and motor graders to its Chinese SDLG operation. The move is being made as part of a larger reorganisation, intended to boost overall profitability. Cost-saving measures are being implemented by Volvo CE to address the profitability of certain products. And the firm is opting to discontinue product development and production of backhoe loaders and motor graders in Europe and Americas and transfer these operations to its Chinese company
November 13, 2014 Read time: 2 mins
Volvo CE will switch production of graders and backhoe loaders to its Chinese SDLG facility
359 Volvo CE has announced it is moving production of its backhoe loaders and motor graders to its Chinese SDLG operation. The move is being made as part of a larger reorganisation, intended to boost overall profitability.

Cost-saving measures are being implemented by Volvo CE to address the profitability of certain products. And the firm is opting to discontinue product development and production of backhoe loaders and motor graders in Europe and Americas and transfer these operations to its Chinese company 5316 SDLG. Combined with other changes, this will result in a workforce reduction of about 1,000 employees, of whom the majority are in Poland, the US and Brazil.

The current product lines of advanced Volvo-branded backhoe loaders and graders have addressed a relatively small premium segment of the market. SDLG-branded backhoe loaders and motor graders will better serve customer demands in the large and growing value segment of the market.

Currently, motor graders are built at Volvo CE’s production sites in Shippensburg, US, and Pederneiras, Brazil, while backhoe loaders are manufactured in Pederneiras, Brazil, and Wroclaw, Poland. Ceasing European production of backhoe loaders will result in the closure of Volvo CE’s operations in Wroclaw.

The measures within Volvo CE are a part of the series of new activities within the increased scope of the Group’s Strategic Program 2013-2015, which was published in conjunction with the report on the third quarter 2014. Combined, these activities are expected to reduce the Group's structural costs by US$472 million. Together with ongoing activities, the ambition in the Strategic Program is to reduce the Group’s structural costs by $1.35 billion compared to 2012 and that all activities are implemented by the end of 2015 with a full-year savings-effect in 2016. For further information, refer to the Volvo Group’s report on the third quarter 2014.

For more information on companies in this article

Related Content

  • Charging 'Roundtable' urges standardisation
    July 23, 2025
    A lack of standardisation for charging infrastructure is holding back the push towards the construction machine sector going electric. Now, a recently established “roundtable” of industry experts will investigate how to move forward.
    Read More
  • Improved excavators and wheeled loaders coming to market
    October 2, 2014
    Manufacturers of excavators and wheeled loaders continue to roll out new models aimed at specific markets - Mike Woof writes With tough emissions controls now in place in Europe and North America, manufacturers have developed an array of advanced solutions to meet requirements, while also developing parallel models for sale in other territories. In the earthmoving sector the latest round of requirements in Europe and North America has resulted in a flurry of new, low emission models equipped with Tier 4
    Read More
  • Volvo CE sees sales increase 30% in first quarter of 2017
    April 25, 2017
    Volvo Construction Equipment reports sales up 30% in the first quarter of 2017 thanks to improving market conditions in all regions except South America. During the first three months of 2017 Volvo CE saw net sales jump by 30% to SEK 16,163 M (SEK 12,452 M in Q1 2016). Operating income was also positively impacted, rising to SEK 1,617 M, up significantly compared to SEK 341 M in the first quarter of 2016. Operating margin also saw good improvement, at 10%, compared to 2.7% in the same period the year before
    Read More
  • Volvo CE finalises truck business deal with Terex
    June 2, 2014
    Volvo Construction Equipment has now finalised its acquisition of the hauler business from Terex. The purchase consideration amounted to US$160 million on a cash and debt-free basis. The deal includes the main production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the US as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the
    Read More

Highlighted Content