Volvo Construction Equipment AB has taken the decision to sell its Hallsberg, Sweden, cylinder production activity, and to source these cylinders externally. At present about 60 people are directly involved in cylinder production.
The decision to sell the Hallsberg cylinder production is in line with Volvo Construction Equipment’s overall strategy of focusing on cab manufacture at this facility. Hallsberg is the company’s global competence center for cab manufacture and supplies most of Volvo Construction Equipment’s other European factories. Competence development and future investments in Hallsberg will now be concentrated on cab operations.
Cylinder production in Hallsberg is expected to stop by the end of 2012. Meanwhile, the production will gradually be transferred to Pacoma GmbH, Hydraulic Technology, Germany. Volvo Construction Equipment AB already has a well-established cooperative partnership with Pacoma which will be further reinforced by the current agreement.