Volvo Construction Equipment will invest SEK 350 M to build a 20,660 m2 excavator plant in Kaluga, Russia, highlighting the company’s continued commitment to the Russian market.
The new factory is part of the on-going expansion in developing markets. The plant will be built on the 15 hectares of land that Volvo acquired in 2007. The Kaluga plant will initially manufacture five models of Volvo excavators including the Volvo EC210, EC240, EC290, EC360 and EC460, with production planned to begin in the first quarter of 2013.
“The new investment in Russia is part of our strategy to build machines where they are sold and thanks to a strong partnership with our Russian dealer, Ferronordic, our customer base is growing significantly in the country,” says Head of Volvo Construction Equipment, Pat Olney.
At the same time, the distributor Ferronordic Machines is implementing substantial investments in the distribution network in the vast country. Ferronordic Machines plans to invest in the region of EUR 100 M in the expansion of its regional distribution network and will open as many as 60 new branches in the country by the end of 2015. This will provide for a presence in all of Russia - from the Baltic Sea to the Pacific Ocean.