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Fri December 01 2023

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Volvo extends Chinese collaboration

24 May 19 Volvo Construction Equipment and SDLG are to consolidate their production and branding of larger excavators made for the Chinese market.

As of December 2020, all excavators from 15t made for the Chinese market will be consolidated into one product line based on the latest Volvo technology. They will all be Volvo branded.

Volvo CE and SDLG are currently manufacturing and selling their own separate excavator product lines in China.

Volvo CE acquired 70% of SDLG in 2007. It said that net sales have since grown from approximately SEK3bn to SEK17bn (£245m to £1.4bn) with good profitability. SDLG has a strong market position in wheel loaders and has successfully entered the excavator market with technology support from Volvo CE, it added.

“Bringing our larger excavator businesses in China together will maximise our ability to serve customers in China,” said Melker Jernberg, president of Volvo Construction Equipment. “SDLG has been a great success since we began our cooperation in 2007. With sales of both brands growing and our cooperation getting ever closer over the years, this is a natural next step for us.”

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