Volvo Construction Equipment invests in China.STOCKHOLM, Sweden -- Today, Volvo Construction Equipment Volvo Construction Equipment (originally Volvo BM) is a subsidiary and business area of AB Volvo. Volvo Construction Equipment develops, manufactures and markets equipment for the construction and related industries. (Volvo CE) has signed an agreement to make an equity investment of 70% into Shandong Lingong Construction Machinery Co., (Lingong), a major construction machinery manufacturer with a comprehensive dealer network throughout China. Volvo CE's investment in Lingong is subject to regulatory approval. "This is another important step in Volvo's growth strategy for China and Asia. I am convinced this cooperation will be very beneficial for both parties, from an industrial as well as from a commercial standpoint", says Mr. Leif Johansson
Leif Johansson (born March 1, 1951) is the President of AB Volvo and CEO of The Volvo Group (since 1997). He sold Volvo Cars to Ford. He is an alumnus of Chalmers University of Technology. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AB Volvo. Lingong, based in Linyi in Shandong Province, had a turnover of RMB RMB Right Mouse Button RMB Regional Management Board (USACE) RMB Rolf Maier Bode (musician, band) RMB Ren Min Bi (currency of People's Republic of China) 2.0 billion (US$ 250 million) in 2005. The company has around 1800 employees. "This is a long term strategic investment which will put Volvo CE in a very strong position in China's construction equipment market", says Mr. Tony Helsham, President and CEO of Volvo CE. "We are here to stay. The cooperation with Lingong is a significant step in our China vision and global strategy. It allows us to strengthen our position, serving customers with different offerings beyond our current premium products. At the same time, we will continue to develop and produce our high end Volvo wheel loaders in our facilities in Eskilstuna and Arvika, Sweden; Asheville, USA and Pederneiras, Brazil." China is the world's largest market for wheel loaders. The total market for 2005 was approximately 110,000 units. Lingong is the 4th largest producer of wheel loaders in China with a market share of around 11% in 2005. "We are delighted to join forces with Lingong. The management team has achieved an impressive record in the past. We are confident that the cooperation between Volvo CE and Lingong will benefit the overall development of China's construction equipment industry. Going forward, Lingong and its suppliers will play an important role in supporting Volvo CE's global development and sourcing", says Mr. Keith Ellis Keith Ian Ellis, bass player with The Koobas, The Misunderstood, Juicy Lucy and founder member of Van Der Graaf Generator in Boxer 1975 with Mike Patto and Ollie Halsall. He died while on tour with Iron Butterfly in Germany in 1978 External links
Volvo CE intends to leverage Lingong's current management, R&D center and operation to the fullest extent possible. Lingong will continue to build its strong position with entry level products. In addition to 16 different models of wheel loaders, Lingong also has a smaller range of backhoe loaders Backhoe loader, also called a Loader backhoe, and commonly shortened to Backhoe, is an engineering vehicle, which consists of a tractor, fitted with a shovel/bucket on the front and a small backhoe on the back. , road rollers and excavators. "This is a win-win deal. We are looking forward to working with Volvo, a well respected global player in our industry. With their support in products, technology and financial strength we will be well positioned to further develop our brand in China as well as to expand overseas", says Mr. Wang Zhizhong, Chairman of Lingong. Both parties have agreed not to reveal any financial details before the closing of the deal, which is expected to take place in the near future. The deal will not have any significant impact on Volvo's earnings or on the financial position of Volvo. About Volvo CE Headquartered in Brussels, Belgium and with around 10,000 employees, Volvo CE develops, produces and markets equipment for construction and related industries. Its products include a full range of wheel loaders, hydraulic crawler Also known as a "Web crawler," "spider," "ant," "robot" (bot) and "intelligent agent," a crawler is a program that searches for information on the Web. Crawlers are widely used by Web search engines to index all the pages on a site by following the links from page to page. and wheeled excavators, articulated haulers An Articulated hauler is an engineering vehicle used to transport loads over rough terrain. The first such machine was introduced by Volvo in 1968. The machine consists of two basic units, one generally called the tractor and the rear section, called the hauler or trailer section, , motor graders, backhoe loaders, compact wheel loaders, compact excavators and skid steer loaders. In 2005, Volvo CE's total sales amounted to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 34.8 billion. The company has production facilities in Europe (Sweden, France, Poland and Germany), North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. (USA and Canada), Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. (Brazil) and Asia (China and Korea) and markets its products in over 100 countries, mainly in the construction and rental customer segments but also in aggregates/quarries, materials handling Materials handling The loading, moving, and unloading of materials. The hundreds of different ways of handling materials are generally classified according to the type of equipment used. , agriculture/gardening and public authorities. Volvo CE is part of the Volvo Group (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :VOLVY)(STO:VOLVA)(STO:VOLVB), the world's largest manufacturer of diesel engines in the 9 to 18 liter category and one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. Volvo CE started its Chinese hydraulic excavator ex·ca·va·tor n. An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue. excavator (eks´k manufacturing facility in April 2003 and has so far invested US$ 24 million into this Shanghai located operation. The company employs around 250 people in China. About Lingong Founded in 1972, Shandong Lingong Construction Machinery Co., Ltd. is a major Chinese construction machinery manufacturer with around 1800 employees. In 2005 its sales reached RMB 2.0 billion (US$ 250million). Lingong develops, manufactures and markets a broad range of products including wheel loaders, excavators, backhoe loaders and road rollers. The company has built a nationwide distribution and service network with approximately 170 dealers, a significant network of service agencies and 10 parts outlets in China. Products are distributed across China and exported to Australia, the Middle East, Malaysia and Mongolia. Volvo Construction Equipment is a major international company developing, manufacturing and marketing equipment for construction and related industries. Its products, leaders in many world markets, include a comprehensive range of wheel loaders, hydraulic excavators, articulated haulers, motor graders and compact equipment. Volvo Construction Equipment is part of the Volvo Group, one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. (http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id= 288419&fn=wkr0001.pdf) (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) This information was brought to you by Waymaker http://www.waymaker.net |
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