Volvo Trucks Acquires Truck Manufacturing Operation in China
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 in Shanxi province in China, for an amount of RMB 0.8 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 4,500 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.
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.