In 2020, more than 4,500 heavy Volvo trucks were imported and delivered to customers in China. In line with the Volvo Group’s long-term strategy, Volvo Trucks is therefore expanding its business in China.
Volvo Trucks will acquire JMC Heavy Duty Vehicle – a subsidiary of Jiangling Motors Co. with a manufacturing facility in Taiyuan, China – for approximately $ 126 million.
Volvo Trucks aims to start production of the new heavy-duty trucks Volvo FH, Volvo FM and Volvo FMX in Taiyuan for customers in China by the end of 2022.
Volvo Trucks has been active in the Chinese market since 1934. In recent years, the growth of logistics services, including e-commerce, has resulted in a surge in Volvo truck sales in the country, company officials said in a press release. In 2020, more than 4,500 heavy Volvo trucks were imported and delivered to customers in China. In line with the Volvo Group’s long-term strategy, Volvo Trucks is therefore expanding its business in China.
Volvo Trucks representatives say they plan to start production of new Volvo FH, Volvo FM and Volvo FMX heavy trucks in Taiyuan for customers in China.
“In recent years we have seen rapid development in the logistics markets and increasing demand for our premium trucks and services. In order to meet the demand from Chinese transport companies, it is time to build a regional value chain with our own heavy-duty truck production facility in China, ”said Roger Alm, President of Volvo Trucks.
Taiyuan operations include stamping, welding, cab manufacture, painting and final assembly of Volvo trucks. After the investment, within a few years the plant will have the capacity to produce 15,000 Volvo trucks per year, with the potential to increase capacity further.
The transaction is subject to customary closing conditions, including regulatory approvals.