Swedish manufacturer invests 700 million SEK in Eskilstuna facility to serve European markets with increased capacity.
24 Nov 2025 | 1495 Views | By Shristi Ohri
Volvo Construction Equipment has announced plans to establish a new crawler excavator assembly plant in Eskilstuna, Sweden, as part of its strategy to strengthen its position in the excavator segment across Europe.
The 30,000 square meter facility represents a 700 million SEK investment and will be capable of producing ...
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Volvo Construction Equipment has announced plans to establish a new crawler excavator assembly plant in Eskilstuna, Sweden, as part of its strategy to strengthen its position in the excavator segment across Europe.
The 30,000 square meter facility represents a 700 million SEK investment and will be capable of producing up to 3,500 machines annually. The plant will manufacture both electric and internal combustion engine models in medium and large size classes ranging from 14 to 50 tonnes.
According to Melker Jernberg, Head of Volvo CE, the investment marks a significant development for Swedish industry. "This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry," Jernberg stated. He emphasized that the facility would reinforce Sweden's position in advanced sustainable manufacturing while supporting local job creation and skills development.
The Eskilstuna plant forms part of a broader 2.5 billion SEK investment announced in June 2025, which includes excavator manufacturing capabilities in Korea, Sweden, and the United States. The company aims to address growing European customer demand while reducing reliance on long-distance logistics, shortening delivery times, and lowering carbon emissions.
The project is subject to environmental and building permit approvals from regulatory authorities. If approved, groundwork is expected to commence during the first half of 2026, with production starting within two years of project initiation.
Volvo CE emphasized that the new facility would enhance supply chain resilience and strengthen Europe's industrial capabilities in an increasingly competitive global market. The company also called for swift execution of regulatory and administrative simplification measures in Europe and Sweden to maximize the investment's benefits.