European Company Profile: Volvo Construction Equipment

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European Company Profile: Volvo Construction Equipment (December 2016)

Off-Highway Research's Company Profiles are objective analyses of major construction equipment manufacturers or component suppliers.

Typical coverage includes:

Company Structure Manufacturing Facilities Component Sourcing
Ownership      Marketing and Distribution  Production
Financial Analysis Research and Development Employees

 

Volvo Construction Equipment (Volvo CE) is one of the world’s leading companies in the industry with production facilities in Europe, Asia, North America and South America and distribution of products, spare parts and services in more than 200 countries.  It has historically held strong positions in Western Europe and North America and has more recently extended its presence in Asia, South America and Eastern Europe.

In the last 20 years Volvo has changed from a niche market supplier, concentrating on its wheeled loader and articulated dump truck product lines, largely within the confines of the European market, into a full liner with a truly global presence.  The most recent examples of the acquisitive strategy that lead to this globalisation have been the taking control of a major Chinese wheeled loader manufacturer, Shandong Lingong, in 2007, the acquisition of the road construction part of the Ingersoll-Rand business, also in 2007, and the purchase of Terex Trucks in 2014.  As a result, Volvo is now a major supplier of articulated dump trucks, hydraulic excavators, mini excavators and wheeled loaders, backed up by road machinery and skid-steer loaders.  Through the SDLG brand, created after the Shandong Lingong purchase, it now also produces backhoe loaders and motor graders, while the Terex Trucks purchase has introduced a second range of articulated dump trucks as well as rigid dump trucks.

Volvo Construction Equipment is the second largest business area in the Swedish Volvo Group, smaller than the combined trucks divisions but bigger than both the buses segment and also Volvo Penta, the group’s engine production arm.  Its global status is underlined by having joined the select group of Western manufacturers that has both started construction equipment production in China and acquired a local manufacturer.  It has moved into manufacturing in India by way of the Ingersoll-Rand road machinery purchase, and also produces machines in Brazil and North America.

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