Eskilstuna, Sweden - Volvo Construction Equipment (Volvo CE)., a construction equipment manufacturer, is expanding its European manufacturing footprint with a new crawler excavator assembly facility in Eskilstuna, Sweden, aimed at serving European markets. The investment aligns with Volvo CE’s strategy to strengthen its position in the excavator segment and respond to rising customer demand.
The 30,000-square-meter Eskilstuna plant will enhance production capacity and flexibility, reduce reliance on long-distance logistics, shorten delivery times, and improve supply chain resilience while lowering carbon emissions.
Mr. Melker Jernberg, Head of Volvo CE, said, “This strategic investment marks a new era for excavator production in Eskilstuna and for Swedish industry. It reinforces Sweden's leadership in sustainable manufacturing, supports local job creation and skills development, and strengthens collaboration with the country’s industrial suppliers and research partners. It also bolsters Europe’s innovation and engineering capabilities in an increasingly competitive global market.”
The 700 million SEK (USD 73.5 million) facility will have an annual production capacity of up to 3,500 machines, including both electric and internal combustion engine models in the 14–50 tonne medium and large-size classes. The investment is part of a broader 2.5 billion SEK (USD 262.5 million) commitment announced in June 2025 to enhance excavator manufacturing capabilities in Korea, Sweden, and the US.
Eskilstuna was chosen after evaluating factors such as logistics advantages, available land, and the potential to provide a complete customer experience leveraging existing site facilities. Volvo CE said further investments within its Swedish industrial footprint may follow to support the new plant.
Construction is expected to begin in the first half of 2026, pending environmental and building permit approvals, with production scheduled to start within two years of project initiation.
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