Volvo Construction Equipment (Volvo CE) and China's Shandong Lingong Construction Machinery Co Ltd (SDLG) will, starting December 2020, consolidate all excavators of 15t made for the Chinese market into one product line based on Volvo technology, marking a significant step forward for both firms, that currently manufacture and sell separate excavator product lines in the Asian country.
The move comes ahead of the roll-out of the China IV emission standards, Volvo revealed in a statement.
Since Volvo CE’s 70% acquisition of SDLG in 2007, net sales at the Chinese firm have grown from $314.4m to $1.78bn.
SDLG also entered the excavator market with technological support from Volvo CE.
Commenting on the 2020 development, president of Volvo CE, melker Jernberg, said: “Bringing our larger excavator businesses together will maximise our ability to serve customers in China.
“Since we began our cooperation in 2007, SDLG has been a great success. With sales of both brands growing and our collaboration getting stronger over the years, this is the natural next step for us.”