VOLVO Construction Equipment has reached an agreement to divest its ABG paver business to the Ammann Group.
The deal includes the ABG paver production and technology centre in Hameln, Germany. As a consequence of the divestment, production of Volvo CE compaction equipment in Hameln will be phased out over time.
Volvo explained the agreement will benefit both companies by strengthening the product portfolio and distribution network of the Ammann Group, while allowing Volvo CE to continue to focus on developing sustainable solutions and future technologies and services.
The number of employees impacted by this announcement is approximately 400.
Volvo added that customers will continue to have access to the ABG paving range, as well as aftermarket and other services, through the Ammann Group dealer network and some selected Volvo CE dealers.
The transaction is subject to regulatory approvals and works council consultations, and closing is anticipated in the first half of 2024.