Volvo Construction Equipment (359 Volvo CE) is consolidating its production of backhoe loaders in the Americas with additional investment. Volvo CE will relocate its backhoe loader manufacture from Tultitlán, Mexico, to the company’s production facility in Pederneiras, Brazil. This is part of a plan to streamline production and gain efficiencies of scale, strengthening of its industrial footprint in the Americas.
Regional production of backhoe loaders will be moved from the facility at Tultitlán in Mexico, to a newly enlarged plant at Pederneiras in Brazil. In addition to producing backhoe loaders for the Latin American market, the Pederneiras plant will export units to North America and other markets.
As part of a US$10 million development, the Pederneiras facility will be expanded to accommodate production of Volvtheo backhoe loaders. Critical componentry will be produced on site, such as dipper, lifting and boom arms, frames and cabs.
Ultimately, a significant proportion of backhoe loader content will be either made in-house or sourced locally; supporting the Brazilian economy as well as reducing currency risk and import duties. “This decision allows us to take advantage of existing competences and the significant investments we have made in the Pederneiras hub, and further consolidate our industrial footprint in the Americas region,” commented Andy Knight, Volvo CE’s president of Operations in the Americas.
The switch in production to Pederneiras will take place throughout 2013. Operations at the Volvo Bus manufacturing facility in Tultitlán will continue to concentrate on bus manufacturing.
Regional production of backhoe loaders will be moved from the facility at Tultitlán in Mexico, to a newly enlarged plant at Pederneiras in Brazil. In addition to producing backhoe loaders for the Latin American market, the Pederneiras plant will export units to North America and other markets.
As part of a US$10 million development, the Pederneiras facility will be expanded to accommodate production of Volvtheo backhoe loaders. Critical componentry will be produced on site, such as dipper, lifting and boom arms, frames and cabs.
Ultimately, a significant proportion of backhoe loader content will be either made in-house or sourced locally; supporting the Brazilian economy as well as reducing currency risk and import duties. “This decision allows us to take advantage of existing competences and the significant investments we have made in the Pederneiras hub, and further consolidate our industrial footprint in the Americas region,” commented Andy Knight, Volvo CE’s president of Operations in the Americas.
The switch in production to Pederneiras will take place throughout 2013. Operations at the Volvo Bus manufacturing facility in Tultitlán will continue to concentrate on bus manufacturing.
