Volvo CE Expands Excavator Production

Volvo Construction Equipment is set to open a new assembly plant for crawler excavators in Eskilstuna, Sweden, enhancing its industrial footprint in Europe. The 30,000 square metre factory is designed to serve the European market with increased production capacity and flexibility, manufacturing machines ranging from 14 to 50 tonnes. The facility will assemble both electric and traditional engine models, aiming to produce up to 3,500 units annually, thereby reducing logistics complexities and delivery times.

This 700 million SEK investment forms part of a broader 2.5 billion SEK strategy focused on strengthening excavator manufacturing across Volvo CE’s global sites in Korea, Sweden, and the United States. The project, pending necessary permits, is planned to start groundworks in the first half of 2026, with full production commencing within two years.

“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry. Bringing additional high-value production and utilising our cutting-edge technology will support local job creation and skills development.” said Melker Jernberg, Head of Volvo CE.

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