Volvo Construction Equipment has announced plans to invest approximately $160 million in its Eskilstuna, Sweden, component division to expand the facility, provide new equipment, develop production and assembly concepts, and to create cross-functional working methods.
Currently, the Swedish facility is composed of about 174,000 square feet and will be expanded to about 207,000 square feet. Additionally, a second furnace will be provided in the new hardening plant and the main plant’s layout will be adapted to flow-oriented production methods similar to those in the car industry, Volvo CE says.
Volvo’s component division manufactures power trains, such as axles and transmissions, for Volvo construction equipment. The production capacity of the division has almost doubled since 2002, according to the company.
Volvo has 2,300 employees at the Eskilstuna facility, 1,800 of which work specifically with Volvo construction equipment.
“When the transformation is completed, we will be more efficient and make more components of a higher quality with the same workforce as today,” says Jorgen Svenningson, president of Volvo’s component division. “Although, we may need additional employees during the running-in period.”