As part of its ongoing expansion in developing markets, Volvo Construction Equipment has announced it will build a new excavator plant in Kaluga, Russia.
The new Volvo CE will invest SEK 350 million (nearly €38 million) to build the 20,660m² excavator plant on the 15 hectares of land Volvo acquired in 2007.
The Kaluga plant will initially manufacture five models of Volvo excavator including the Volvo EC210, EC240, EC290, EC360 and EC460, with production planned to begin in the first quarter of 2013.
President and CEO of Volvo Construction Equipment, Pat Olney, says 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," he says
"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."
At present, the growing construction equipment market in Russia is estimated to reach approximately 25,000 units in 2011.