{"id":31081,"date":"2025-06-27T06:09:03","date_gmt":"2025-06-27T13:09:03","guid":{"rendered":"https:\/\/essential.construction\/news\/volvo-ce-to-sell-off-ownership-in-china-based-sdlg\/"},"modified":"2025-06-27T06:09:03","modified_gmt":"2025-06-27T13:09:03","slug":"volvo-ce-to-sell-off-ownership-in-china-based-sdlg","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/volvo-ce-to-sell-off-ownership-in-china-based-sdlg\/","title":{"rendered":"Volvo CE to sell off ownership in China-based SDLG"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1750947076\/news\/text_to_speech\/volvo-ce-sell-majority-ownership-sdlg_cjuqkg.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Brief:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Volvo Construction Equipment is <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.volvoce.com\/global\/en\/news-and-events\/news-and-stories\/2025\/volvo-ce-refocuses-its-presence-in-china-divests-its-shares-in-sdlg\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>selling its 70% stake<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in China\u2019s Shandong Lingong Construction Machinery Co as part of a strategic revamp<strong> <\/strong>to reduce its exposure to the country.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The multinational company said Tuesday that its shares, valued at 8 billion Swedish krona (nearly $839 million), will be sold to a fund largely owned by the Lingong Group, a minority owner of SDLG.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The deal would allow Volvo CE, a subsidiary of Volvo Group,\u00a0to refocus its business strategy and to have a more targeted approach to serving China\u2019s construction equipment market with premium products. The sale is expected to close later this year if approved by regulators.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><span><span><span>Dive Insight:<\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Since 2006, Volvo CE has held a majority stake in SDLG as a way to gain access to China\u2019s domestic construction equipment market. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The company said its investment and collaboration with LGG has been successful over the years, but with changing market dynamics, the two have agreed to part ways and pursue business strategies that would be \u201cmutually beneficial.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c[W]ith increasing competition, and the need to transform to new technologies as well as strengthen interaction with customers, we need to re-focus,\u201d Malker Jernberg, head of Volvo CE, said in a statement.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p>Selling Volvo CE\u2019s majority stake would make SDLG, previously a joint venture, a primarily Chinese-owned company. SDLG is one of China\u2019s largest construction equipment makers known for producing excavators, wheel loaders and road rollers.\u00a0<span><span><span><span><span><span>The size of the country\u2019s market is valued at $223.7 billion as of last year, and has grown at an average rate of 12.5% over the past five years, <a rel=\"nofollow noopener\" href=\"https:\/\/www.ibisworld.com\/china\/market-size\/construction-equipment-manufacturing\/507\/\" target=\"_blank\">according to IBISWorld<\/a>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The decision to sell Volvo CE\u2019s ownership comes as many U.S. companies move their <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.manufacturingdive.com\/news\/vietnam-manufacturing-semiconductors-hub-growth-us-biden-china-amkor-intel-google\/702544\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>supply chains out of China to nearby countries<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, in part because of rising labor costs and recent tariff pressures. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Last year, roughly 20% of U.S. businesses in China said they would cut investments over concerns regarding the country\u2019s slowing growth, according to a <a rel=\"nofollow noopener\" href=\"https:\/\/www.amcham-shanghai.org\/en\/article\/amcham-shanghai-releases-report-business-climate-china-0\" target=\"_blank\">survey conducted by the American Chamber of Commerce in Shanghai<\/a>. Meanwhile, 40% of respondents said they were redirecting investments, with Southeast Asia and India as popular choices.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cChina remains an important market for us, and we aim to capitalize on our opportunities by focusing on sustainable solutions in targeted segments,\u201d Jernberg added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Volvo CE has operated its excavator factory in Shanghai since 2002, and recently announced plans to upgrade the facility with new production lines. The company is also moving forward with plans to transform a research and development center in Jinan, China, into the Global Technology System of Volvo CE, for expanded innovation and collaboration around the world.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>As Volvo CE retools its presence in China, the company is also expanding across other countries. It recently <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.volvoce.com\/global\/en\/news-and-events\/news-and-stories\/2025\/volvo-ce-announces-major-investment-in-european-retail-business-by-acquiring-swecon\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>agreed to acquire European retail business Swecon<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> from Lantm\u00e4nnen to bolster operations in Germany, Sweden, Estonia, Latvia and Lithuania. Volvo CE also said it will begin producing crawler excavators and large wheel loaders at its Shippensburg, Pennsylvania, facility as part of a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.manufacturingdive.com\/news\/volvo-ce-to-expand-us-production-shippensburg-pennsylvania-261-million\/750659\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>$261 million global investment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> aimed at mitigating supply chain risks related to tariffs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Volvo CE has <a rel=\"nofollow noopener\" href=\"https:\/\/www.volvogroup.com\/en\/about-us\/organization\/our-global-presence\/volvo-group-north-america.html\" target=\"_blank\">16 manufacturing sites<\/a> across the U.S., Canada and Mexico, according to its website. The subsidiary\u2019s North American headquarters is in Shippensburg.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/volvo-ce-sell-majority-ownership-sdlg\/751715\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Volvo CE to sell off ownership in China-based SDLG\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/volvo-ce-to-sell-off-ownership-in-china-based-sdlg\/\" aria-label=\"Read more about Volvo CE to sell off ownership in China-based SDLG\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-31081","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=31081"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31081\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=31081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=31081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=31081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}