Volvo CE complete divestment of SDLG equity

Ownership in Shandong Lingong Construction Machinery Co. sold to fund largely owned by Lingong Group

VOLVO Construction Equipment (Volvo CE) have completed the previously announced divestment of their ownership in China-based SDLG (Shandong Lingong Construction Machinery Co.) to a fund predominantly owned by the Lingong Group (LGG) for SEK8 billion (RMB6 billion).

The transaction is expected to have a positive effect of approximately SEK1 billion on operating income as of closing, subject to currency fluctuations. Going forward, Volvo CE will be targeting focused customer segments in China and enhance their utilization of the Chinese supplier ecosystem.