Production has begun in Brazil on excavators from Shandong Lingong Construction Machinery Co. The SDLG-branded machines will be built in a $10 million purpose-built assembly hall within the Volvo Group facility in Pederneiras, in São Paulo state.
SDLG will begin with four crawler excavator models, covering weight classes from 13.8 tonnes to 24.3 tonnes. The machines will be sold to companies working in a variety of industries, particularly construction, forestry, agricultural, mining and excavation. The factory will be the first SDLG production facility outside China, but mirrors the manufacturing processes in place at its main factory in Linyi, China.
SDLG machines have been sold in Brazil for four years.
“Localized production will help SDLG be more flexible and responsive to its customers and dealers in the region,” said Pat Olney, president and CEO of Volvo Construction Equipment. “We’re taking advantage of the Volvo Group’s long history in Brazil to introduce an exciting new initiative with these locally built SDLG excavators.”
The production of SDLG excavators in Brazil will increase the brand’s competitiveness in the country by speeding up delivery ties and opening up more favorable financing options for customers. SDLG will continue to operate in Brazil through its own branded organization and dedicated distribution network and sales force with customer support.
The Volvo Group holds a 70-percent shareholding interest of SLCM. The Volvo Group’s Pederneiras facility also houses a Volvo Construction Equipment factory that manufactures wheel loaders, excavators, motor graders, articulated haulers and compactors.
SLCM recently announced it will introduce its SDLG-branded equipment to customers in North America, with plans to launch two wheel loader models. It also recently entered markets in Latin America, Russia, Oceania, Africa, the Middle East and much of Asia.