Volvo Construction Equipment will invest SEK 360 million (US$ 54 million) to build a 20660 m2 excavator factory in Kaluga, Russia. The site is about 175 km south-west of Moscow and the factory will be built on a 15 ha plot that Volvo bought in 2007.
Production at the plant is due to start in the first quarter of 2013, with the initial focus on 20 to 50 tonne class machines. The models Volvo plans to produce are the EC210, EC240, EC290, EC360 and EC460 tracked machines.
President and CEO of Volvo Construction Equipment, Pat Olney, said the new plant will meet increasing demand in the country. "The new investment in Russia is part of our strategy to build machines where they are sold and thanks to a strong partnership with our Russian dealer, Ferronordic, our customer base is growing significantly in the country. We have seen a strong commitment from Ferronordic, who is investing a substantial amount of money to support their further expansion in the Russian market," he said.
According to Volvo, some 25000 units of construction equipment are expected to be sold in Russia this year.