GOTEBORG, Sweden, April 22, 2002 (PRIMEZONE) -- Volvo Construction Equipment (Volvo CE) has decided to establish a wholly owned subsidiary and facility, Volvo Construction Equipment (China) Co, Ltd., for production of construction equipment in Shanghai, China. The new facility is scheduled to be in operation as from spring 2003 and will initially be used for the assembly of crawler excavators. The company will employ 150 to start with.
The Chinese market for crawler excavators is one of the biggest markets in the world with annual sales of over 10,000 units, a number that is expected to grow over the coming years.
"Our new facility is designed to meet future customer requirements and we will be able to produce a couple of thousands of machines depending on customer demand," said Mr. Tony Helsham, President & CEO of Volvo CE.
The new company will be based on 70,000 m2 of land in the Jinqiao Export Processing Zone in Shanghai's Pudong New Area. The investment in the new facility amounts to approximately 15 MUSD. Volvo has recently been granted the necessary business license and needed approvals.
Volvo CE currently has 8 independent dealers in China responsible for sales and service of mainly heavy equipment.
This information was brought to you by Waymaker http://www.waymaker.net