Volvo CE president delighted with US$160 million acquisition of Terex haulers
Volvo Construction Equipment president Martin Weissburg has been talking about the key Volvo CE acquisition of Terex's haulers' business
New Volvo Construction Equipment president Martin Weissburg hopes that the group’s US$160 million December 2013 acquisition of the Terex Equipment rigid and articulated hauler business will be finalised during the second quarter of 2014. It has been an important move for Volvo he said.
Speaking at Volvo CE’s Conexpo press conference this week, Weissburg said “Terex brings a very strong position in China. (It is) a profitable business today with a well-established population (and) we look forward to welcoming some of those 400 to 500 Terex employees into the Volvo family.”
Also, he added, “the Terex products fit in very well … the rigids and the artics. Of course, Volvo already has the market-leading Volvo branded articulated hauler, (but) we look forward to welcoming them (the Terex ADTs and RDTs) into our product family and driving things forward.”
“Volvo CE already serves very well and very deeply the light mining, aggregate and quarry business. And the Terex machines, especially the rigids, take us up to the 100 tonne truck. It does fill a gap that we had had in our product offering, as our articulated haulers were nowhere near that big.”
The multi-million dollar acquisition brings with it the main Terex Equipment production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the US as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China.
Asked if Volvo CE was planning to sell Terex ADTs under the SDLG brand, Weissburg said, “Our focus very much is to welcome the Terex employees into the Volvo Group, and then leverage the existing structure, branding and distribution to make sure we’re capturing those units sales and getting a return on our investment. This is not a small investment by any stretch.”
Another benefit of the Terex Equipment acquisition, Weissburg said, was that Volvo CE has the Terex Equipment brand rights for up to and “perhaps beyond” five years.