VOLVO Construction Equipment (Volvo CE) has selected Eskilstuna in Sweden as the location for its new crawler excavator assembly factory, designed to serve the European markets.
The 30,000 SQM facility aims to meet growing demand by increasing capacity and flexibility. The site is tipped to reduce reliance on long-distance logistics and offer shorter delivery times, as well as provide enhanced supply chain resilience and a reduction in carbon emissions.
“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” said Melker Jernberg, head of Volvo CE. “It will significantly contribute to reinforcing Sweden’s position as a leader in advanced sustainable manufacturing. Bringing additional high-value production and utilising 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 facility will be built for a production volume up to 3,500 machines yearly on a mixed line of both electric and internal combustion engine models, in the medium and large size classes between 14-50 tonne.
“We are extremely proud and excited to grow our manufacturing capabilities in Sweden, our home market,” added Melker 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 optimise 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 anticipated to begin during the first half of 2026 with start of production within two years from project initiation.
