Volvo CE invests in Brazilian SDLG facility

Volvo Construction Equipment (3573 Volvo CE) is to invest $10 million (€7.6 million) in the creation of a new exclusive manufacturing facility in Brazil for its 5453 SDLG-branded machines. This investment in Pederneiras, São Paulo State, will also see a separate legal entity established, called SDLG America Latina.

The new facility will share the site of Volvo CE’s existing manufacturing complex in Pederneiras, but be separate and solely for the manufacture of SDLG machines.

Work on the new factory has started, and when completed, initially four SDLG models of tracked excavators (LG6150E, LG6210E, LG6225E and LG6250E spanning the weight classes between 13.8-24.3tonnes)  will roll off the production lines, starting from the middle of 2013.

Taking into account its mid-year start, it is expected that production output in the first year will be approximately 120 units.

Demand for construction equipment in the value sector of the market is forecast to grow rapidly in Brazil and throughout Latin America, abnd Volvo CE says its investment in local production will help reduce lead times, among other benefits, while the new legal entity SDLG America Latina will provide support to the brand operations, customers and distributors across Latin America.

SDLG will continue to operate as an independent brand, with its own dedicated organisation, identification, distribution network, sales force and technical structure.