Volvo CE is building a new excavator factory in Sweden, which is due for completion in 2028. The investment is expected to create jobs and drive growth in the Mälardalen region.
The SEK 700 million investment in Eskilstuna forms part of Volvo CE’s strategy to build closer to its customers and strengthen its regional presence. In recent years alone, the company has invested more than SEK 9 billion in industrial capacity and its retail network across Europe.
Eskilstuna already hosts Volvo CE’s global headquarters, its largest research and development center, 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.
“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 investment strengthens Volvo CE’s position in an increasingly competitive global market, where excavators represent the largest and most important segment within the construction industry. The European market for larger excavators has grown by 50% since 2010, and demand is expected to continue to increase.
The new facility in Eskilstuna will cover approximately 30,000m2 and feature mixed module assembly for both electric and combustion engine crawler excavators in weight classes ranging from 14-50tonnes, 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.
“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.
