Volvo Development Gear (Volvo CE) has signed a contract to promote its possession in China-based SDLG (Shandong Lingong Development Equipment Co) to a fund predominantly owned by the Lingong Group (LGG).
Going ahead Volvo CE shall be concentrating on centered buyer segments in China and improve its utilisation of the Chinese language provider ecosystem.
In 2006, Volvo CE acquired a majority stake in SDLG, with LGG as a minority shareholder. The strategic funding gave Volvo CE entry to the essential home Chinese language development gear market. The SDLG collaboration has been profitable, however for strategic causes, Volvo and LGG now consider it might be mutually useful to pursue unbiased enterprise methods. Subsequently, the events have agreed {that a} fund predominantly owned by the LGG will take possession of Volvo’s SDLG shares.
“SDLG has served us properly since 2006. Nevertheless, with rising competitors, and the necessity to rework to new applied sciences in addition to strengthen interplay with prospects, we have to re-focus. China stays an essential marketplace for us, and we intention to capitalize on our alternatives by specializing in sustainable options in focused segments. We additionally plan to leverage the wonderful industrial system in China,” says Melker Jernberg, head of Volvo CE.
Volvo CE will preserve its strategic concentrate on main the event of sustainable options within the Chinese language development business, concentrating on key segments reminiscent of mining, quarry & aggregates, and heavy infrastructure. The emphasis shall be on offering tailor-made and complete options that deal with particular buyer wants whereas creating a sustainable distribution roadmap suited to the extremely aggressive panorama.
The operations in China function a globally aggressive manufacturing centre, catering to each home and export markets. To leverage the standard and price benefits current within the aggressive industrial atmosphere, Volvo CE has operated an excavator manufacturing facility in Shanghai since 2002 and has just lately introduced the institution of latest manufacturing traces. Transferring ahead, China will stay a vital part of our worth chain and a base for quite a few suppliers, each home and worldwide.
A key part of Volvo CE China technique is to proceed to strengthen the Jinan Know-how Centre (JTC) into the in depth International Know-how System of Volvo CE, which goals to foster innovation and collaboration on a world scale. This entails possession of merchandise and establishing a typical structure to be utilized worldwide. Volvo CE stays devoted to innovation and collaboration globally, guaranteeing that our options not solely meet the wants of right now, but in addition pave the best way for a sustainable future.
Volvo Group will promote its shares in SDLG for 8 billion SEK. Closing is predicted to happen within the second half of 2025, topic to regulatory approvals and different circumstances.
Photographs courtesy of Volvo CE
