Volvo Building Gear (Volvo CE) has signed a contract to promote its possession in China-based SDLG (Shandong Lingong Building Equipment Co) to a fund predominantly owned by the Lingong Group (LGG).
Going ahead Volvo CE might 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 vital home Chinese language building tools market. The SDLG collaboration has been profitable, however for strategic causes, Volvo and LGG now consider it will be mutually useful to pursue impartial enterprise methods. Due to this fact, 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 growing competitors, and the necessity to remodel to new applied sciences in addition to strengthen interplay with prospects, we have to re-focus. China stays an vital marketplace for us, and we purpose 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 deal with main the event of sustainable options within the Chinese language building business, concentrating on key segments comparable to mining, quarry & aggregates, and heavy infrastructure. The emphasis might be on offering tailor-made and complete options that handle particular buyer wants whereas growing 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 value benefits current within the aggressive industrial atmosphere, Volvo CE has operated an excavator manufacturing facility in Shanghai since 2002 and has lately introduced the institution of latest manufacturing traces. Shifting ahead, China will stay an important element of our price chain and a base for quite a few suppliers, each home and worldwide.
A key element 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 worldwide 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 at present, but in addition pave the way in which for a sustainable future.
Volvo Group will promote its shares in SDLG for 8 billion SEK. Closing is anticipated to happen within the second half of 2025, topic to regulatory approvals and different situations.
Pictures courtesy of Volvo CE
