Volvo CE select Eskilstuna for new crawler excavator assembly plant
Investment in Sweden part of company’s ambitions to strengthen European position in important excavator segment
VOLVO Construction Equipment (Volvo CE) are expanding their European industrial footprint with a new crawler excavator assembly factory in Eskilstuna, Sweden, to serve the European markets.
As announced in June this year, the investment in Sweden is part of Volvo CE’s ambitions to strengthen their position in the important excavator segment. The 30,000m2 Eskilstuna facility aims to meet the growing European customer demand by increasing capacity and flexibility, and will enable reduced reliance on long-distance logistics and shorter delivery times, thereby enhancing supply chain resilience and reducing carbon emissions.
‘This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry. It will significantly contribute to reinforcing Sweden’s position as a leader in advanced sustainable manufacturing,’ said Melker Jernberg, head of Volvo CE.
‘Bringing additional high-value production and utilizing our cutting-edge technology in Eskilstuna will support local job creation, skills development, and a continued collaboration with Sweden’s strong network of industrial suppliers and research partners. Furthermore, it will strengthen Europe’s innovation and engineering power and industrial resilience in an increasingly competitive global market. To get full leverage, we also count on a strong and swift execution on Europe’s and Sweden’s promised agenda on regulatory and administrative simplification.’
The SEK700 million facility investment will be built for a production volume of up to 3,500 machines a year on a mixed line of both electric and internal combustion engine models, in the medium and large size classes between 14 and 50 tonnes. This investment is a part of the SEK2.5 billion investment announced in June 2025 dedicated to excavator manufacturing capabilities in Korea, Sweden, and the US.
‘We are extremely proud and excited to grow our manufacturing capabilities in Sweden, our home market,’ continues Mr Jernberg. ‘Eskilstuna has been chosen as the preferred site for the new factory following a comprehensive evaluation of factors such as logistics advantages, available land, and the potential to deliver a complete customer experience supported by the site’s existing facilities and surroundings. We will continue to leverage on the collaboration of our current industrial footprint in Sweden, where further investments may be required to optimize and support the investment in Eskilstuna.’
The decision to establish the new crawler excavator plant in Eskilstuna is subject to approvals of relevant environmental and building permits by the regulatory authorities. Groundwork is estimated to begin during the first half of 2026 with start of production within two years from project initiation.
