Volvo CE expands European footprint
Volvo investing $73.5M in crawler excavator plant in Sweden
Volvo Construction Equipment plans to build a production facility for crawler excavators in Eskilstuna, Sweden, expanding its industrial footprint in Europe amid growing demand.
The 30,000-square-meter facility is designed to increase production capacity, improve supply-chain flexibility and shorten delivery times for European customers, according to a Nov. 24 Volvo release. The factory will also help cut carbon emissions by reducing long-distance logistics.
“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” Melker Jernberg, head of Volvo CE, stated in the release. “It will significantly contribute to reinforcing Sweden’s position as a leader in advanced sustainable manufacturing.”
The company plans to invest about 700 million Swedish krona ($73.5 million) in the plant, which will produce up to 3,500 medium- and large-size excavators annually, including both electric and internal-combustion models. The project is part of Volvo CE’s broader $261.6 million global investment in excavator manufacturing announced earlier this year.
Construction is subject to environmental and building permit approvals, with groundwork slated to begin in the first half of 2026 and production starting about two years later.
Editor’s note: All amounts have been converted to U.S. dollars.
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