Volvo CE reaffirms electric push and highlights near-US$1bn Europe investment

The press event featured a machine show. Image: KHL

Talking about electric equipment, Jernberg said that the company would “continue to lead, continue to invest and continue to believe.” He added that the sustainability reasons for electric equipment were as strong as ever and had not changed, but that a better argument needed to be made for the total cost of ownership savings of electric equipment.

“We need to change the game totally, because we are coming from the beginning. This is a lot of The Paris Agreement, save the planet, being green, all of that in communication that has been a little bit played down. It will, of course, come back and that’s the main reason [for electric equipment].

“But our way of doing this is to make it short-term profitable for our customers, because all of you that have tried the machines, know that they are better,” said Jernberg.

He gave an example of an L120 electric wheeled loader that had operated for 1,100 hours and had running costs 28% lower than its diesel equivalent.

Melker Jernberg, president of Volvo CE. Image: KHL

Carl Slotte, head of region Europe, said, “We believe electric adoption is slow and slower than we thought.” He pointed to Oslo, Norway, as an example of high electric equipment adoption, with 98% of construction activity in the city now fossil-free.

He added that the next requirement would be to make construction activity 100% emission-free and added that governments and municipalities would play a key role in driving growth.

At the press conference, Volvo CE said that its future focus would be on three segments: construction, mining, and quarry and aggregates.

“These three today are globally around 80% our business. We are good in them, but we also see growth opportunities here. Our judgment is that these three will have on a global market level a yearly growth on between 5-6% and that’s a good place to be. Our ambition is, of course, to grow a little bit faster than the market,” said Jernberg.

European investment

The OEM said that it is strengthening its industrial and retail footprint to get closer to customers, shorten lead times and mitigate supply chain disruptions.

In Europe, this includes a SEK 9.2 billion (US$985 million) investment, with SEK 702 million (US$75.1 million) for a new excavator assembly facility in Eskilstuna, Sweden, set to begin production in 2028. The plant will produce up to 3,500 machines annually as volumes ramp up, marking Volvo CE’s first excavator manufacturing in Sweden.

Volvo CE’s demolition excavator. Image: KHL

This investment is complemented by the acquisition of Swecon, expanding Volvo CE’s presence and providing direct access to around 70% of its retail operations in Europe.

“Eskilstuna is a powerful symbol of our commitment to Europe. By investing closer to our customers, we are strengthening our ability to respond faster, collaborate more closely, and support them in staying competitive in a rapidly changing market,” said Slotte.

The theme of the Volvo Days is Smarter Solutions. Driven by you, highlighting how long-term strategic investment is enabling Volvo CE’s transformation.

Construction Briefing sat down with Melker Jernberg for an interview at the event. An article based on that interview will appear in due course.