Volvo CE sells SDLG stake for $837 million, recommits production in China

Volvo CE signed a contract to sell its ownership in China-based Shandong Lingong Construction Machinery Co (SDLG) to a fund predominantly owned by the Lingong Group (LGG). Going forward, Volvo CE will target focused business segments in China and enhance its utilization of the Chinese supplier ecosystem. This means Volvo CE will: Sell its entire stake of 70 percent of the shares in SDLG to a fund predominantly owned by the SDLG minority owner LGG Focus on offering Volvo branded premium products and services to focused segments in China Utilize its system in China as a production center serving both the domestic and export markets Continue to strengthen the Jinan Technology Center (JTC) into the Global Technology System to maximize the product development opportunities in China for the rest of the world.

machineryasia machineryasia
Jun 24, 2025 - 15:30
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Volvo CE sells SDLG stake for $837 million, recommits production in China
Volvo CE signed a contract to sell its ownership in China-based Shandong Lingong Construction Machinery Co (SDLG) to a fund predominantly owned by the Lingong Group (LGG). Going forward, Volvo CE will target focused business segments in China and enhance its utilization of the Chinese supplier ecosystem. This means Volvo CE will: Sell its entire stake of 70 percent of the shares in SDLG to a fund predominantly owned by the SDLG minority owner LGG Focus on offering Volvo branded premium products and services to focused segments in China Utilize its system in China as a production center serving both the domestic and export markets Continue to strengthen the Jinan Technology Center (JTC) into the Global Technology System to maximize the product development opportunities in China for the rest of the world.
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