AB Volvo will invest the equivalent of about $250 million to meet growing worldwide demand for heavy-duty diesel engines and heavy-duty gearboxes.
Through 2009, the Swedish-based equipment manufacturer is committing more than 1.7 billion SEK in Volvo Powertrain production facilities in order to boost production capacity of the engines and gearboxes by 20 and 50 percent, respectively. Volvo Powertrain is the Volvo Group company responsible for the development of engines, gearboxes and drive shafts, with research design, engineering and production facilities throughout Sweden and in Hagerstown, Md. A large part of the investment, slightly more than 1.1 billion SEK, will go to the company's foundry and production plant in Skovde, Sweden, where production capacity for the engines will be increased by 20 percent. Recently, a $150-million investment was made in the Hagerstown facility.
Volvo is the world's largest producer of heavy-duty diesel engines in the 9- to 18-liter category.