Work has officially begun on Volvo Construction Equipment’s (Volvo CE) new excavator factory in Eskilstuna, Sweden.
Swedish prime minister Ulf Kristersson and deputy prime minister Ebba Busch made the symbolic first dig at the new site using an electric excavator last week.
Set for completion in 2028, Volvo CE has invested SEK 700 million (A$1.1 billion) in its new factory in Eskilstuna, which Volvo CE says forms part of its long-term strategy to build closer to its customers and strengthen its regional presence.
Ulf said it felt like coming home at the ground breaking ceremony, as he grew up in Eskilstuna.
“I’m incredibly pleased to be here and show how this proud heritage is being carried forward,” he said,
“I strongly believe in the close dialogue between business and politics that we have in Sweden – keep up the good work.”
Ebba called it the next chapter in Sweden’s industrial history.
“These yellow machines have quite literally built this country – from roads and mines to cities,” she said.
“At a time of increasing uncertainty, competitiveness is not just an economic issue. It is about independence, resilience and the ability to build our future with our own resources.”
Eskilstuna is the site of Volvo CE’s global headquarters, its largest research and development centre, and the sales organisation for Europe, Africa, the Middle East and Oceania, as well as a component factory – making it a central hub for the company’s operations.
With the new factory, Volvo CE will manufacture all its key products in Sweden –articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna and cabs in Hallsberg.
The new facility in Eskilstuna will cover approximately 30,000 square metres and feature mixed module assembly for both electric and combustion engine crawler excavators in weight classes ranging from 14 to 50 tonnes, with an annual production capacity of up to 3500 machines.
