Volvo CE selects Swedish site for crawler excavator assembly plant

Volvo Construction Equipment (CE), headquartered in Sweden, has selected Eskilstuna, Sweden, as the site of its new crawler excavator assembly plant.

In June, Volvo CE first announced it would be making a $262 million strategic investment aimed at expanding its crawler excavator footprint globally, with investments planned for sites in North America, South Korea and Sweden.

The 323,000-square-foot Eskilstuna facility aims to meet growing European customer demand by increasing capacity and flexibility. With a $73.29 million investment, Volvo CE says the facility will be able to produce up to 3,500 machines annually on a mixed line, including electric and internal combustion engine models in the medium and large size classes between 15.43-55.12 tons.

According to Volvo CE, the site will enable reduced reliance on long-distance logistics, shorter delivery times, enhanced supply chain resilience and reduced carbon emissions.

The decision to establish the new crawler excavator plant is subject to the approvals of relevant environmental and building permits by the regulatory authorities. Groundwork is estimated to begin during the first half of 2026, with production starting within two years from project initiation. 

“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” says 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 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.”