SDLG and VOLVO Construction Equipment will deepen cooperation to accelerate growth of profits. Since December 2020, the two parties will integrate, using latest technologies of VOLVO, their excavator products at and above 15t manufactured for China market, into the same product line utilizing VOLVO brand.
At present, VOLVO Construction Equipment and SDLG produce and sell excavator products in their respective brands. To accelerate the growth rate and meet the forthcoming China Emission Standard IV for non-road engines, all excavator products at and above 15t for China market, by December 2020, will be unified into the same product line. The relevant products will use latest VOLVO technologies as the solid foundation and support while using VOLVO brand.
Since VOLVO Construction Equipment acquired 70% shares of SDLG in 2007, the net sales volume of SDLG has increased considerably from SEK 3 billion to SEK 17 billion, with wonderful profitability. In the category of wheeled loaders, SDLG has established powerful market position. At the same time, it has entered excavator market by relying on the technical support from VOLVO Construction Equipment.
“By merging our large and medium excavator business in China market, we can upgrade our ability of serving the Chinese customers to the largest extent”, said Melker Jernberg, the President of VOLVO Construction Equipment. “Since the partnership was established with SDLG in 2007, SDLG has obtained great success. As the sales of the two brands expand, and as our partnership gets closer, it is natural that we have made this move.”