Following a rapid rise in demand for its SDLG branded machines in Latin America a new excavator manufacturing line and legal entity – SDLG America Latina – is being created in the Brazilian state of São Paulo.
Volvo Construction Equipment (Volvo CE) has announced that it is to invest $10 million in the creation of a new exclusive manufacturing facility in Brazil for its SDLG branded machines. This investment in Pederneiras, São Paulo State, will also see a separate legal entity established, called SDLG America Latina.
The new facility will share the site of Volvo CE’s existing manufacturing complex in Pederneiras, but be separate and solely for the manufacture of SDLG machines. Work on the new factory has begun, and when completed, initially four SDLG models of tracked excavators will roll off the production lines, starting from the middle of 2013. The models are the LG6150E, LG6210E, LG6225E and LG6250E, spanning the weight classes between 13.8 tonnes to 24.3 tonnes. Taking into account its mid-year start, it is expected that production output in the first year will be approximately 120 units.
Demand for construction equipment in the value sector of the market is forecast to grow rapidly in Brazil and throughout Latin America. This investment in local production will help reduce lead times, among other benefits, while the new legal entity SDLG America Latina will provide support to the brand operations, customers and distributors across Latin America.
SDLG will continue to operate as an independent brand, with its own dedicated organization, identification, distribution network, sales force and technical structure.