A rapid rise in demand for Volvo SDLG-branded machines in Latin America has led the manufacturer Construction Equipment to create a new excavator manufacturing line and legal entity - SDLG America Latina - in the Brazilian state of São Paulo.
The firm has announced that it will invest $10M (£6.2M) to build the new facility at its existing manufacturing complex in Pederneiras, but said the facility will be separate and solely for the manufacture of SDLG-branded machines.
Work on the new factory has begun, and when it is complete, it will produce four SDLG models of tracked excavators, starting from the middle of 2013. The models will be the LG6150E, LG6210E, LG6225E and LG6250E, which span the weight classes between 13.8t and 24.3t.
Volvo anticipates that production output in the first year will be approximately 120 units.
The firm said that demand for construction equipment is forecast to grow rapidly in Brazil and throughout Latin America, and the investment in local production will help reduce lead times, among other benefits, while the new legal entity SDLG America Latina will support to brand operations, customers and distributors across Latin America.
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