Nearly 20 years after acquiring a majority share of Chinese wheel loader manufacturer SDLG, Volvo Construction Equipment is selling its entire ownership stake.
Volvo will sell its 70% interest in SDLG to Lingong Group, the current minority owner. SDLG stands for Shandong Lingong Construction Machinery Co. Lingong Group is also the parent company of aerial work platform manufacturer LGMG.
After purchasing SDLG in 2006, the SDLG brand expanded globally, and entered the North American market in 2013 with two wheel loader models. The company later took on Volvo’s backhoe and motor grader production under the SDLG brand. Volvo motor grader production ceased at its plant in Shippensburg, Pennsylvania. The companies later collaborated on excavator production for the Chinese market.
The SDLG sale is part of Volvo’s global refocusing strategy. The company announced earlier this month a $261 investment in its global production. That includes $40 million to be spent over the next five years to expand excavator production and add wheel loaders at its Shippensburg campus.
The SDLG sale totals 8 billion SEK, or about $827 million, with closing set for the second half of 2025, subject to regulatory approvals and other conditions.
Volvo plans to add wheel loader production at its plant in Shippensburg, Pennsylvania.Volvo CE
The company says its focus in China will be “leading the development of sustainable solutions in the Chinese construction industry, targeting key segments such as mining, quarry & aggregates, and heavy infrastructure.” That includes “Volvo-branded premium products and services.”
Volvo says it will also continue to invest in its Jinan Technology Center it opened in 2014 to design, test and develop construction equipment targeted to emerging markets.
Meanwhile, SDLG continues to try to expand its brand in North America. The company displayed its latest wheel loaders and excavators at the ARA Show in Las Vegas this year where it sought to increase its network of rental companies and dealers.
As it is selling SDLG, Volvo CE also revealed it is acquiring Swecon, a Volvo construction machinery supplier based in Sweden with locations in Germany, Latvia and Lithuania. It has been a Volvo CE dealer since 1946 and reported 2024 annual revenues of 10 billion SEK, or about $1.3 billion.
The deal, set for the second half of 2025 pending regulatory approval, will give Volvo CE ownership and management of the majority of its retail business in Europe, the company says. Volvo is paying 7 billion SEK, or about $731 million.
“Owning and managing most of our retail operations in Europe provides us a competitive advantage to better meet the rapidly changing demands of our customers and drive new business models, while bringing in valuable competence from Swecon,” says Carl Slotte, Volvo CE head of sales Europe.
