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

  • SDLG unveils new concept excavator and wheeled loader
    November 25, 2014
    SDLG has lifted the covers on two new concept machines it has developed, a wheeled loader and an excavator. These models represent a major development for SDLG as they will compete in larger equipment classes than current models from the firm. Both the excavator and the wheeled loader will suit duties in heavy duty equipment segments such as quarrying, where reliability and durability are crucial to deliver maximum utilisation. High productivity is also claimed, along with good all round visibility and a co
    Read More
  • SDLG unveils new concept excavator and wheeled loader
    January 6, 2017
    SDLG has lifted the covers on two new concept machines it has developed, a wheeled loader and an excavator. These models represent a major development for SDLG as they will compete in larger equipment classes than current models from the firm. Both the excavator and the wheeled loader will suit duties in heavy duty equipment segments such as quarrying, where reliability and durability are crucial to deliver maximum utilisation. High productivity is also claimed, along with good all round visibility and a co
    Read More
  • Volvo CE’s electric prototype excavator
    May 17, 2017
    Volvo CE has developed an all-electric mini excavator, which it is now demonstrating in prototype form. The machine is powered by the latest generation Li-Ion battery technology and is said to be highly efficient. Volvo CE points out that the machine is a prototype intended to test the concept and that its configuration will be likely to change during development. The 3.5tonne machine also does without conventional hydraulic circuits, marking it apart from currently available electric excavators. Lars Stenq
    Read More
  • Innovations in aggregates production will boost quarry efficiency
    March 16, 2016
    New innovations are underway that will help optimise rock crushing and screening operations and boost quarry efficiency overall - Mike Woof writes. Quarrying is a tough industry that provides enormous challenges to equipment providers as machines and technology have to be rugged, durable and productive. Cutting the cost of production while optimising output has been a major target for suppliers, with new technologies playing an increasingly important role. Taking the long view with regard to increased qu
    Read More

Highlighted Content