Volvo CE strengthens strategic focus in China with SEK 8 billion divestment of SDLG ownership to Lingong Group

Volvo CE strengthens strategic focus in China with SEK 8 billion divestment of SDLG ownership to Lingong Group

(IN BRIEF) Volvo Construction Equipment (Volvo CE) has completed the sale of its ownership in SDLG, transferring the stake to a fund mainly controlled by Lingong Group for SEK 8 billion (about 6 billion RMB). The divestment is expected to boost Volvo CE’s operating income by around SEK 1 billion once finalized, depending on currency variations. Looking ahead, the company intends to focus on specific customer groups in China and further integrate into the local supplier ecosystem to increase its competitiveness. The Volvo Group continues to build on its long-standing mission of delivering sustainable transport and infrastructure solutions worldwide, supported by its global workforce and strong financial results.

(PRESS RELEASE) GOTHENBURG, 1-Sept-2025 — /EuropaWire/ — Volvo Construction Equipment (Volvo CE) has finalized the previously announced sale of its stake in Shandong Lingong Construction Machinery Co (SDLG), a major China-based equipment manufacturer. The divestment has been made to a fund largely controlled by Lingong Group (LGG), with a total transaction value of SEK 8 billion (approximately 6 billion RMB).

This move is projected to generate a positive impact of around SEK 1 billion on Volvo CE’s operating income following the deal’s closure, though the final figure will depend on currency developments.

With the sale complete, Volvo CE plans to refine its strategic direction in the Chinese market by concentrating on carefully chosen customer segments while strengthening collaboration with local suppliers across the country. This approach is designed to improve the company’s efficiency and competitiveness in one of the world’s largest construction equipment markets.

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.

Media Contact:

Claes Eliasson
Head of Media Relations
+46 76 553 7229
press@volvo.com

SOURCE: AB Volvo