AB Volvo To Invest €180 million In Engine & Gearbox Production

Volvo -as in AB Volvo Trucks and not cars, has decided to invest more than SEK 1.7 billion (£ 122m - $241m - €180m) in Volvo Powertrain to increase its manufacturing capacity for heavy diesel engines by 20 per cent and heavy gearboxes by 50 per cent. The reason why the Swedes are proceeding to these investments is the increased demand for the Volvo Group’s products in emerging markets such as Eastern Europe and Asia. -Continued after the jump

A large part of the investment, slightly more than SEK 1.1 billion, will be in the foundry and production plant in Skövde, where production capacity for heavy diesel engines will be increased by 20 per cent. The investment there will comprise machinery, premises and environment-enhancing measures. In Köping, where gearboxes are produced, the investment will amount to SEK 400 million. In addition, minor investments will be made in a number of Volvo Powertrain’s plants in other parts of the world, to ensure that industrial systems are adjusted to the higher production capacity.