Volvo Construction Equipment to Shut Rokbak Amid Profitability Concerns

Volvo Construction Equipment (Volvo CE) has announced the closure of its Rokbak business as part of a long-term strategic shift, citing unsustainable profitability and rising operational challenges.

The Rokbak unit, which generated revenues of SEK 1.0 billion in 2025, has been loss-making, prompting the company to reallocate resources toward its broader hauling solutions portfolio.

The closure is expected to impact Volvo CE’s operating income by approximately SEK 0.7 billion in the first quarter of 2026. The company said around SEK 0.4 billion of this impact relates to non-cash items, primarily goodwill impairment.

Rokbak, formerly known as Terex Trucks, has been a manufacturer of off-highway articulated haulers for over four decades. However, increasing operational and supply chain costs, along with global trade challenges, have significantly weighed on its financial performance.

Production of Rokbak articulated haulers is anticipated to cease in the second half of 2026.

Volvo CE said the decision aligns with its focus on long-term sustainability and innovation. The company plans to concentrate investments on developing and expanding its core hauling solutions.

Despite the shutdown, the Motherwell facility in Scotland will continue to operate as a key hub for designing and manufacturing Volvo rigid haulers and supporting future product development.

The closure remains subject to a collective consultation process, expected to conclude by the third quarter of 2026. Volvo CE added that it will work closely with unions, government authorities, and other stakeholders to ensure a responsible transition for affected employees.