Volvo CE Announces New Crawler Excavator Plant in Sweden with 700 Million SEK Investment

​

Key Highlights

• 700 million SEK investment.

• 30,000 sq. m modern facility.

• 3,500 units of annual capacity.

• Electric and ICE models (14–50 tonnes).

• Production expected within two years.

Volvo Construction Equipment has revealed a major plan to build a new crawler excavator assembly plant in Eskilstuna, Sweden. This move is part of the company’s strategy to boost its excavator production and strengthen its presence across the European market.

700 Million SEK Investment for a Modern Facility

The new facility will span 30,000 square meters and represents an investment of 700 million SEK. Once operational, the plant will have the capacity to produce up to 3,500 crawler excavators every year.

Volvo CE will manufacture both electric and internal combustion engine (ICE) excavator models at this unit. These machines will fall in the medium and large segments, ranging from 14 to 50 tonnes, meeting diverse customer needs in Europe.

A Big Boost for Swedish Industry

Melker Jernberg, Head of Volvo CE, described the project as a major milestone for the country. “This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” he said.

He highlighted that the new plant will strengthen Sweden’s role in advanced and sustainable manufacturing, while also supporting local job creation and skill development.

Part of a Larger Global Investment Plan

This new plant is a key component of Volvo CE’s broader 2.5 billion SEK investment announced in June 2025. The wider plan includes upgrading excavator manufacturing in Korea, Sweden, and the United States.

The goal is to meet the rising demand in Europe by:

• Reducing dependency on long-distance logistics

• Shortening delivery times

• Lowering carbon emissions

• Improving supply chain resilience

Awaiting Approval and Timeline

The project is currently awaiting environmental and building permit approvals from Swedish authorities.

If approvals are granted on time:

• Groundwork is expected to begin in the first half of 2026

• Production could start within two years of project initiation

Volvo CE has also called for quicker regulatory and administrative processes to ensure the investment delivers its full economic and industrial benefits.

Strengthening Europe’s Industrial Capability

With this new plant, Volvo Construction Equipment aims to reinforce Europe’s position in the global manufacturing landscape. The company believes this new facility will help build a more robust supply chain and support the growing shift toward sustainable construction machinery.

The Eskilstuna project stands as a strong step toward future-ready manufacturing, meeting both market demands and environmental goals.

Also Read: Caterpillar Unveils the 2025 785D Haul Truck: A New Age of Mining Power

CMV360 Says

Volvo Construction Equipment’s new excavator plant in Eskilstuna marks a major step toward strengthening Europe’s manufacturing capability. With a 700 million SEK investment, the facility will boost production capacity, support sustainable technology, and create new opportunities for local employment. By producing both electric and ICE models, Volvo aims to meet rising European demand while reducing logistics challenges. Once approved, the project will speed up deliveries, cut emissions, and enhance supply chain resilience.