Volvo Construction Equipment Expands European Manufacturing with New Excavator Facility to Boost Capacity and Strengthen Regional Supply Chains

Volvo Construction Equipment Expands European Manufacturing with New Excavator Facility to Boost Capacity and Strengthen Regional Supply Chains

(IN BRIEF) Volvo Construction Equipment is expanding its European manufacturing network with a new crawler excavator assembly facility in Eskilstuna, Sweden, reinforcing its strategic focus on excavators and meeting increasing regional demand. The 30,000 m² plant is designed to enhance Volvo CE’s production capacity, improve supply-chain flexibility, and reduce emissions tied to long-distance logistics. Supported by a 700 million SEK investment, the facility will manufacture up to 3,500 electric and combustion-engine excavators annually in the 14-50-tonne range. The project forms part of Volvo CE’s wider 2.5 billion SEK global investment in excavator production across Sweden, Korea, and the United States. Pending regulatory approval, construction begins in 2026, with production expected within two years.

(PRESS RELEASE) GOTHENBURG, 24-Nov-2025 — /EuropaWire/ — Volvo Construction Equipment (Volvo CE) is set to deepen its industrial presence in Europe with the establishment of a new crawler excavator assembly plant in Eskilstuna, Sweden. Designed to support the company’s long-term growth strategy in the excavator segment, the upcoming facility expands Volvo CE’s regional manufacturing capabilities and will serve as a key hub for meeting the rising market demand across Europe.

Unveiled earlier this year, the investment reinforces Volvo CE’s commitment to boosting production capacity while increasing agility within its excavator portfolio. Covering 30,000 square meters, the Eskilstuna plant is expected to help shorten delivery times, reduce dependency on long-distance transport, improve supply-chain resilience, and contribute to lowering carbon emissions associated with logistics operations.

“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” says Melker Jernberg, Head of Volvo CE. “It will play a central role in strengthening Sweden’s position in advanced sustainable manufacturing. By adding high-value production and leveraging our latest technologies, the new facility will foster local job creation, long-term competence development, and deeper collaboration with Sweden’s strong supplier base and research community. At the same time, it reinforces Europe’s engineering capabilities and competitiveness in a global market that is rapidly evolving. To fully realize this potential, we also look forward to decisive progress on regulatory simplification across Sweden and Europe.”

Volvo CE plans to invest 700 million SEK in the new plant, which is being engineered for an annual output of up to 3,500 excavators. Production will run on a mixed assembly line supporting both electric and traditional internal combustion engine models in the 14-50-tonne classes. The investment contributes to Volvo CE’s broader 2.5 billion SEK commitment, announced in June 2025, that focuses on strengthening excavator manufacturing in Korea, Sweden, and the United States.

The project remains subject to regulatory approvals, including environmental and construction permits. Pending authorization, groundwork at the Eskilstuna site is expected to commence during the first half of 2026, with production scheduled to begin within two years of the project’s official start.

Journalists wanting further information, please contact:

Åsa Alström
Head of Strategic Communications
Volvo Construction Equipment                                                         
asa.alstrom@volvo.com

Anne Bast                                                                                                                            
Head of Brand, Marketing & Communications Sales Region EU
Volvo Construction Equipment                                                                                                                   
anne.bast@volvo.com                                                                                                                                     
+46 735 585906

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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.

SOURCE: AB Volvo