Volvo Construction Equipment Sells SDLG Stake to Lingong Group

Eskilstuna, Sweden - Volvo Construction Equipment (Volvo CE)., a construction equipment manufacturer, has completed the divestment of its equity in China-based Shandong Lingong Construction Machinery Co. (SDLG) to a fund primarily owned by the Lingong Group (LGG) for SEK 8 billion (USD 860 million).

The transaction is expected to boost Volvo CE’s operating income by around SEK 1 billion (USD 106 million), subject to currency fluctuations, providing a significant financial uplift for the company.

Volvo CE will now shift its strategy in China to target focused customer segments while deepening its engagement with the local supplier ecosystem. The company aims to leverage Chinese suppliers more effectively to optimize its operations and better serve the market.

Industry analysts see this move as part of Volvo CE’s broader strategy to streamline its portfolio and concentrate on high-potential growth areas, while maintaining a strong presence in one of the world’s largest construction machinery markets.

The Lingong Group, a leading player in China’s construction equipment sector, will now have a controlling stake in SDLG, strengthening its domestic market position and accelerating growth initiatives.

This strategic divestment marks a key milestone in Volvo CE’s global restructuring efforts, signaling a sharper focus on profitable operations and enhanced collaboration with key partners in China.

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