The United States government awarded Volvo Construction Equipment a contract Oct. 4 to build and deliver to Iraq approximately 200 units of construction equipment. The contract, to be completed in two years, is worth approximately $30 million.
Starting next month, Volvo will deliver an initial order of 60 wheel loaders, three wheeled excavators, 22 motor graders and two backhoe loaders to the cities of Baghdad and Basrah. In total, the order calls for the delivery of 120 Volvo L120E wheel loaders, 28 Volvo EW180B wheeled excavators, 50 Volvo G710B motor graders and 10 Volvo BL70 backhoe loaders. Volvo CE will manufacture and assemble the equipment at plants in Sweden, Canada, Germany, Poland and the United States.
During the announcement of the award, James Peesker, director of governmental sales for Volvo CE, said Volvo won the contract because of its ability to meet strict delivery requirements.
The contract competition was restricted to companies within the World Trade Organization or in the coalition countries engaged in Iraq. After the equipment is shipped, it will be owned by and under the control of the Iraqi ministries.