Volvo Construction Equipment (VCE) has begun work on a new excavator factory in Eskilstuna, Sweden, marked by a symbolic first dig involving the country’s prime minister.
Prime minister Ulf Kristersson and deputy prime minister Ebba Busch took the controls of electric 23-tonne excavators to mark the start of construction, alongside Volvo Group president and chief executive Martin Lundstedt and VCE president Melker Jernberg.
Kristersson, who grew up in Eskilstuna, said: “It really feels like coming home. I’m incredibly pleased to be here and show how this proud heritage is being carried forward. I strongly believe in the close dialogue between business and politics that we have in Sweden – keep up the good work.”
The SEK 700m (£54.1m) facility, due for completion in 2028, will cover approximately 30,000 sq. metres and use mixed module assembly to produce both electric and combustion-engine crawler excavators in weight classes ranging from 14 to 50 tonnes. Annual production capacity will reach up to 3,500 machines.
Once operational, the plant will mean VCE manufactures all its key product lines in Sweden: articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna and cabs in Hallsberg.
Eskilstuna already houses VCE’s global headquarters, its largest research and development centre, its sales organisation for Europe, Africa, the Middle East and Oceania, and an existing component factory.
The company said around 40% of its total production hours are currently based in Sweden, and that it has invested more than SEK 9bn in industrial capacity and its retail network across Europe in recent years.
VCE said the investment responds to rising demand in the excavator segment, which it described as the largest and most important within the construction equipment industry. The company said the European market for larger excavators has grown by 50% since 2010, with demand expected to continue rising.
Melker Jernberg, president of VCE, said: “Sweden has been a natural part of Volvo CE’s industrial journey for nearly two centuries, and we are proud to continue making major investments that strengthen both Sweden and Europe on the global stage.
“By investing in new excavator production in Eskilstuna, we are strengthening our global competitiveness while creating jobs, developing technology, and reinforcing our strong industrial base in Sweden.”
Busch said: “These yellow machines have quite literally built this country – from roads and mines to cities. 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.”
Main image: Sweden’s prime minister Ulf Kristersson in front of the EC230 Electric – one of the excavator models that will be assembled in the new factory in Eskilstuna. Courtesy of Volvo CE
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