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Volvo CE Relocating Backhoe Production

Posted on January 17, 2013

Volvo Construction Equipment announced that it will consolidate its manufacturing capacity in the Americas by relocating backhoe loader manufacturing from Tultitlán, Mexico, to the company’s production facility in Pederneiras, Brazil. The move is intended to streamline production, gain efficiencies of scale and strengthen its industrial footprint in the Americas region, Volvo said.

As part of a $10 million development, the Pederneiras facility will be extended to accommodate backhoe loader production. Critical componentry, including dipper, lifting and boom arms, frames and cabs, will be produced on site and ultimately, a significant proportion of backhoe loader content will be either made in-house or sourced locally, the company said.

"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 move of backhoe production to Pederneiras, which will take place progressively through the year, will impact the 115 Volvo CE employees currently working at Tultitlán. A detailed human resources plan has been developed in collaboration with Volvo Bus, which manages the site. Operations at the Volvo Bus manufacturing facility in Tultitlán will continue.