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Volvo CE and SDLG agree new cooperation deal to consolidate excavator product lines by 2020 for the Chinese market

Volvo Construction Equipment (CE) and Shandong Lingong Construction Machinery (SDLG) have announced that they are to merge their excavator product lines for the Chinese market.

The construction equipment manufacturers said that all models from 15 t will be consolidated into a single product line by 2020. This is in order to accelerate growth in conjunction with the upcoming China IV emission standards.

The new product line will be based on Volvo’s latest technology and will also carry the Volvo brand name.

Melker Jernberg, president of Volvo CE, said: “Bringing our larger excavator businesses in China together will maximise our ability to serve customers there.

“SDLG has been a great success since we began our cooperation in 2007. With sales of both brands growing and our cooperation getting ever closer over the years, this is a natural next step for us.”

Volvo CE acquired SDLG in 2007 with the procurement of 70% of the company’s shares. The company said that since then SDLG’s net sales have grown from approximately SEK 3 billion (US$312 million) to SEK 17 billion ($1.77 billion).

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