Heavy Equipment

Volvo CE to Build Major Excavator Factory in Sweden

The $73 million project is expected to produce up to 3,500 machines a year.

Updated on

November 30, 2025

Volvo CE Crawler EC230 Electric. (Photo: Volvo CE)

Volvo Construction Equipment (Volvo CE) is expanding in Europe with a new crawler excavator assembly in Eskilstuna, Sweden, to meet growing customer demand across the continent.

The 30,000-square-metre factory, coming at a time of growing efficiency improvements in manufacturing, will boost Sweden’s role in sustainable production.

“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” said Melker Jernberg, Head of Volvo CE.

“Bringing additional high-value production and utilising our cutting-edge technology in Eskilstuna will support local job creation, skills development, and a continued collaboration with Sweden’s strong network of industrial suppliers and research partners.”

The $73 million project is expected to produce up to 3,500 machines a year, including electric and traditional internal combustion engine models weighing between 14 and 50 tonnes.

Volvo CE said the plant would make production more flexible, cut delivery times, reduce reliance on long-distance logistics, and lower carbon emissions.

“It will strengthen Europe’s innovation and engineering power and industrial resilience in an increasingly competitive global market,” Jernberg added.

“To get full leverage, we also count on a strong and swift execution on Europe’s and Sweden’s promised agenda on regulatory and administrative simplification.”

The Eskilstuna facility is part of a wider $2.6 billion programme announced in June 2025 to boost excavator production in Sweden, Korea, and the United States.

The site was chosen after a careful evaluation of logistics, available land, and the potential to provide a full customer experience alongside existing operations.

“We are extremely proud and excited to grow our manufacturing capabilities in Sweden, our home market,” Jernberg said, adding that Eskilstuna was picked for its prime location.

Construction depends on approvals, with work set to start in early 2026 and production within two years. Volvo CE says the facility may also boost its Swedish footprint.

The facility will help Volvo CE produce sustainable, electrified excavators efficiently. It also strengthens Sweden’s position as a leader in green manufacturing.