Volvo CE to sell ABG paver business to Ammann

Volvo Construction Equipment (Volvo CE) and the Ammann Group, a global supplier of mixing plants, machines and services to the construction industry, have reached an agreement for Ammann to acquire Volvo CE’s global ABG paver business, a business unit that saw 2022 revenues of SEK 1,100 M.

The divestment includes the ABG paver production and technology center in Hameln, Germany, and will ensure the availability of the range and full support through the Ammann Group distribution channels and selected Volvo CE dealers, the announcement stated. About 400 people will move from Volvo CE to join the Ammann Group. In addition, production of Volvo CE compaction equipment in Hameln will be phased out.

The transaction also includes the transfer of Volvo CE’s paving businesses in Linyi (China) and Bangalore (India).

Both companies are expected to benefit from the transaction, the announcement stated. Ammann Group will see its product portfolio and distribution network strengthened, while Volvo CE will be able to continue to focus on developing sustainable solutions and future technologies and services in line with its strategic direction.

“This strategic acquisition completes the depth of our product offerings and makes the solutions we offer customers more comprehensive,” said Hans-Christian Schneider, CEO of the Ammann Group. “The acquisition will also position Ammann with a suite of solutions, covering everything from asphalt plants to paving and compaction.”

Ammann will leverage its industry knowledge and customer relationships to guide development of the pavers, the company said, with ABG in Hameln becoming the Center of Excellence for paving operations within the company. Customers and dealers of both Ammann and Volvo CE will retain access to the full line of paving offerings, as well as aftermarket and other services.

The transaction is expected to be completed within the first half of 2024, subject to regulatory approvals and works council consultations.