Volvo Construction Equipment (CE) has begun work on a new excavator factory in Eskilstuna, Sweden, with Swedish prime minister Ulf Kristersson and deputy prime minister Ebba Busch marking the occasion by taking the controls of electric 23ton excavators for a symbolic first dig.
The new factory, set for completion in 2028, is expected to create jobs and drive growth in the Mälardalen region, while also supporting Europe’s innovation and industrial capacity. The SEK700 million investment in Eskilstuna forms part of Volvo CE’s long-term strategy to build closer to its customers and strengthen its regional presence. In recent years, the company has invested more than SEK9 billion in industrial capacity and its retail network across Europe.
Volvo CE has operated in Sweden for nearly 200 years, and around 40% of the company’s total production hours are based in the country. During the visit, the prime minister and the minister for energy, business and industry test-drove wheel loaders and articulated haulers, before stepping behind the controls of Volvo CE’s electric 23ton excavators to help start work on the new factory.
“It really feels like coming home. I’m incredibly pleased to be here today 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!” says Ulf Kristersson, prime minister of Sweden, who grew up in Eskilstuna.
“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. Today, Volvo CE is writing the next chapter in Sweden’s industrial history – one that inspires and looks firmly to the future,” says Ebba Busch, minister for energy, business and industry.
Eskilstuna already hosts Volvo CE’s global headquarters, its largest research and development centre, and the sales organisation for Europe, Africa, the Middle East and Oceania, as well as a component factory. With the new factory, Volvo CE will manufacture all its key products in Sweden: articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna and cabs in Hallsberg.
“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,” says Melker Jernberg, president of Volvo CE.
The European market for larger excavators has grown by 50% since 2010, and demand is expected to continue to increase. The new facility in Eskilstuna will cover approximately 30,000sqm and feature mixed module assembly for both electric and combustion engine crawler excavators in weight classes ranging from 14 to 50 tons, with an annual production capacity of up to 3,500 machines. Local production will also result in shorter lead times, reduced supply chain disruptions and lower transport emissions.
“Long term investments in industrial capacity and skills are essential to the competitiveness of both the Volvo Group and Europe. I am very proud of the establishment in Eskilstuna, which strengthens our presence in Europe and contributes to the development of both Sweden and our company,” says Martin Lundstedt, president and CEO of AB Volvo.
Image: Volvo CE
