Volvo Trucks acquires heavy truck manufacturing operation in China

Date: 17.09.2021

The objective is to start production of the new heavy-duty Volvo FH, Volvo FM, and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022

Volvo Trucks has been active in the Chinese market since 1934

The objective is to start production of the new heavy-duty Volvo FH, Volvo FM, and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022

Volvo Trucks has been active in the Chinese market since 1934

The acquisition will see production of the new heavy-duty Volvo FH, Volvo FM, and Volvo FMX trucks in Taiyuan

Volvo Trucks has agreed to acquire JMC Heavy Duty Vehicle Co. Ltd, a subsidiary of Jiangling Motors Co. Ltd, which includes a manufacturing site in Taiyuan, Shanxi province, China, for an amount of RMB 0.8 billion (approximately SEK 1.1 billion).

The objective is to start production of the new heavy-duty Volvo FH, Volvo FM, and Volvo FMX trucks in Taiyuan for customers in China from the end of 2022. Volvo Trucks has been active in the Chinese market since 1934.

During the last couple of years, the strong growth of logistics services, including e-commerce, has led to a surge in the sales of Volvo trucks in the country. In 2020, more than 4500 heavy-duty Volvo trucks were imported and delivered to customers in China.

In line with the long-term Volvo Group strategy, Volvo Trucks is therefore expanding its business operation in China. "We’re committed to shaping the future of sustainable transport solutions. With our long-standing presence in China, we’re growing our sales, and we’re expanding our strong network of sales and service points together with our private dealer partners," says Roger Alm, president Volvo Trucks.

"Over the last couple of years, we’ve seen a fast development of the logistics markets and an increasing demand for our premium trucks and services. To meet the demand from Chinese transport operators, the time is right for us to establish a regional value chain with our own heavy-duty truck manufacturing in China."

The operations in Taiyuan will include stamping, welding, manufacturing of cabs, painting, and the final assembly of Volvo trucks. After investment, within a few years, the plant will have the capacity to produce 15,000 Volvo trucks per year with the potential to increase the capacity further. The transaction is subject to customary closing conditions, including regulatory approvals.

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