Volvo Trucks has acquired JMC Heavy Duty Vehicle Co’s manufacturing operation in China for 800 million yuan (NZ$ 176.4m).
JMC is a subsidiary of Jiangling Motors Co with the manufacturing site based in Taiyuan, Shanxi province.
Volvo Trucks aims 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.
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.
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 the brand’s trucks in the country, it says.
In 2020, more than 4500 heavy-duty Volvo trucks were imported and delivered to customers in China.
“We are committed to shaping the future of sustainable transport solutions. With our long-standing presence in China, we are growing our sales, and we are expanding our strong network of sales and service points together with our private dealer partners,” Volvo Trucks president Roger Alm says.
“Over the last couple of years, we have 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,” he says.
