Volvo CE and SDLG take next step in China

Excavators above 15 tonnes to be consolidated into single Volvo-branded product line

VOLVO Construction Equipment (Volvo CE) and SDLG are to further extend their co-operation with all larger excavators made for the Chinese market to be consolidated into a single product line. Both companies currently manufacture and sell their own separate excavator product lines in China.

In order to further accelerate growth in conjunction with the upcoming China IV emission standards, all excavators from 15 tonnes upwards for the Chinese market will be consolidated into one product line by December 2020. The products will be based on the latest Volvo technology and branded Volvo.

Since Volvo CE acquired 70% of SDLG in 2007, net sales have grown from approximately SEK3 billion to SEK17 billion with good profitability. SDLG have a strong market position in wheel loaders and have successfully entered the excavator market with technological support from Volvo CE.

‘Bringing our larger excavator businesses in China together will maximize our ability to serve customers in China,’ commented Melker Jernberg, president of Volvo CE. ‘SDLG have been a great success since we began our co-operation in 2007. With sales of both brands growing and our co-operation getting ever closer over the years, this is a natural next step for us.’