Volvo Construction Equipment has chosen the city of Eskilstuna in Sweden for a new crawler-excavator assembly plant. The company confirmed the plan toward the end of 2025, outlining a facility designed to strengthen its production capacity in the European market.
The future site will have an area of about 30,000 m² and will manufacture products with a regional market focus. According to Volvo CE, the plant will enable the company to increase production, enhance operational flexibility, and better match production with customer demand.
The investment amounts to 700 million SEK. The new assembly line is designed for up to 3,500 machines per year, operating as a mixed-model system capable of producing both electric and internal-combustion crawler excavators in the 14–50 tonne classes.
This development is part of a broader 2.5 billion SEK global initiative aimed at expanding crawler-excavator manufacturing capacity in Sweden, South Korea, and the United States. The company wants to strengthen its regional manufacturing network and improve the resilience of its supply chains.
According to the company, the Eskilstuna plant will have a number of operational advantages: shorter transport distances, shorter delivery times, and also a more stable supply chain. The company also indicates a potential reduction in CO₂ emissions thanks to minimized logistics-related transport.
The Volvo CE leadership said the plant would support Sweden's position in advanced industrial manufacturing. The project is expected to add to local employment, technical training, and collaboration with industrial suppliers and research partners.
Construction is set to start in 2026, subject to environmental and building approvals. Production is likely to begin within two years of the project starting.
The establishment of the new plant is in line with Volvo CE's strategy to localize production closer to major markets, improve sustainability across its operations, and respond more efficiently to demand for equipment in Europe.
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