Construction Equipment GLOBAL

Volvo Construction Equipment increases cab operations at Hallsberg plant in Sweden, while sheet metal production is to be disposed of

Volvo Construction Equipment (Volvo CE) is increasing cab operations at its plant in Hallsberg, Sweden creating a global centre of expertise and a centre for the manufacture of cabs in Europe. The company has also decided to dispose of sheet metal production at the plant in Hallsberg.

To further strengthen the focus on cab manufacturing, increase expertise and maximize the existing investment in the cab operations, European cab manufacturing will be concentrated at Volvo CE's plant in Hallsberg. As part of this new focus, the company has decided to start manufacturing cabs for excavators over 11 tons produced in Europe in Hallsberg, which were previously manufactured by third party suppliers. This increase is in addition to the cabs for articulated haulers and wheel loaders, which are currently made at Volvo CE’s facility in Hallsberg. This is expected to increase current cab production in Hallsberg by around 20%.

Furthermore, the introduction of new products constitutes a technology shift in which more components will be made of materials other than sheet metal, which means lower volumes of sheet metal parts, compared to previously. The company has decided therefore to buy sheet metal parts in the future, rather than producing them internally.

Negotiations have begun with JP Industri AB (Jonsson & Paulsson Industri AB) in Östersund as a supplier of sheet metal parts.

The change affects around 70 people, whereof 30 after the planned technology shift, and means that the sheet metal manufacturing will be gradually phased out. The plan is that the phasing out will be completed during the third quarter of this year. Impact negotiations resulting from this decision will begin immediately.

Please contact:

Mattias Marktin, Plant Manager, Volvo CE Hallsberg, Tel: 016- 5416162 , email: mattias.marktin@volvo.com

Ted Lindblad, HR manager, Volvo CE Hallsberg. Tel. 016- 5416482, email: ted.lindblad@volvo.com

FOR FURTHER INFORMATION

Jacqueline Reid

Interim Director, External Communications
Volvo Construction Equipment
E-mail: jacqueline.reid@volvo.com

Brian O'Sullivan

SE10
London
Tel: +44 7733350307
E-mail: osullivan@se10.com