Volvo to relocate Americas backhoe production

Volvo Construction Equipment has announced plans to move backhoe loader manufacture in the Americas from Tultitlán, Mexico to Pederneiras, Brazil. The company says this will streamline production and bring efficiencies of scale.

Backhoes made in Brazil will be for sale in the Latin American market and will also be exported to North America and other regions.

In order to accommodate the shift in production, Volvo will invest US$ 10 million in its Pederneiras factory. This will allow it to produce critical components such as dipper, lifting and boom arms, frames and cabs on site. It says a significant proportion components will be either made in-house or sourced locally.

“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.