At the Bauma trade show in Munich, Germany, Volvo Construction Equipment President Tony Helsham announced that the company plans to integrate its motor-grader products with the recently acquired Ingersoll Rand Road Development division into one Volvo CE road-machinery business group headquartered in Shippensburg, Pa.
Acquisition of the IR division includes a full range of heavy compactors, asphalt pavers and milling machines. The acquisition also thrusts the Volvo brand into the North American materials-handling market, as it includes IR's U.S.-produced telehandlers and rough-terrain forklifts.
Volvo CE gains 20 dealers in North America and distribution companies in Europe and Russia, which will extend the company's reach in the regions.
"Strategically, the acquisition of Ingersoll Rand Road Development fits exceptionally well with Volvo's current operations within motor graders and positions Volvo as a full-range manufacturer of heavy road construction equipment," says Helsham. "Geographically, the purchase also fits Volvo CE very well and provides attractive growth possibilities by capitalizing on the common dealer network in North America, Europe and Asia."
Volvo CE is also integrating acquired Lingong, the No. 4 Chinese wheel-loader producer. Volvo and Lingong's combined wheel-loader production will be 25,000 units, which Helsham says will top the global market. Lingong comes with 170 distributors in China. The two acquisitions position Volvo to push for its goal of becoming the world's third-largest producer of construction equipment by the end of 2009.