+
Volvo Sells SDLG Stake, Refocuses China Strategy
Equipment

Volvo Sells SDLG Stake, Refocuses China Strategy

Volvo Construction Equipment (Volvo CE) will divest its entire 70 per cent holding in Shandong Lingong Construction Machinery (SDLG), transferring the shares to a fund largely owned by SDLG’s minority shareholder, Lingong Group Jinan Heavy Machinery (LGG). The disposal, valued at 8 billion SEK, is expected to complete in the second half of 2025 once regulatory clearances are secured.

Explaining the decision, Volvo CE President Melker Jernberg said the 2006 venture had given the Swedish manufacturer vital access to China’s construction-equipment market, yet intensifying competition and the march towards low-carbon technologies now demand a sharper focus. “China remains crucial for us,” he noted, “but we must concentrate on sustainable, premium solutions for chosen segments while leveraging the country’s excellent industrial base.”

Volvo CE will therefore devote its Chinese operations to producing Volvo-branded machines and services for sectors such as mining, quarrying and heavy infrastructure. Its Shanghai excavator plant, in operation since 2002 and recently expanded, will continue to serve domestic and export customers, capitalising on local supply-chain advantages.

Another pillar of the revised plan is the further strengthening of the Jinan Technology Centre, which will be integrated more deeply into Volvo CE’s global R&D network. The aim is to develop common product architectures and accelerate innovation for worldwide markets, ensuring the brand remains at the forefront of sustainable construction solutions.

Both Volvo and LGG described the separation as mutually beneficial, allowing each party to pursue independent growth strategies after nearly two decades of successful collaboration.


Volvo Construction Equipment (Volvo CE) will divest its entire 70 per cent holding in Shandong Lingong Construction Machinery (SDLG), transferring the shares to a fund largely owned by SDLG’s minority shareholder, Lingong Group Jinan Heavy Machinery (LGG). The disposal, valued at 8 billion SEK, is expected to complete in the second half of 2025 once regulatory clearances are secured.Explaining the decision, Volvo CE President Melker Jernberg said the 2006 venture had given the Swedish manufacturer vital access to China’s construction-equipment market, yet intensifying competition and the march towards low-carbon technologies now demand a sharper focus. “China remains crucial for us,” he noted, “but we must concentrate on sustainable, premium solutions for chosen segments while leveraging the country’s excellent industrial base.”Volvo CE will therefore devote its Chinese operations to producing Volvo-branded machines and services for sectors such as mining, quarrying and heavy infrastructure. Its Shanghai excavator plant, in operation since 2002 and recently expanded, will continue to serve domestic and export customers, capitalising on local supply-chain advantages.Another pillar of the revised plan is the further strengthening of the Jinan Technology Centre, which will be integrated more deeply into Volvo CE’s global R&D network. The aim is to develop common product architectures and accelerate innovation for worldwide markets, ensuring the brand remains at the forefront of sustainable construction solutions.Both Volvo and LGG described the separation as mutually beneficial, allowing each party to pursue independent growth strategies after nearly two decades of successful collaboration.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code