Volvo Construction Equipment Compact Business Unit is being created 鈥渢o maximise the opportunities in the growing compact equipment segment鈥�, Volvo said.
The new unit will operate as an independent entity within Volvo CE, taking care of everything from design and production to marketing and distribution for compact equipment, including electric powered ones.
Initially it will be responsible for compact excavators up to nine tonnes and compact wheeled loaders up to the L50 model.
The compact segment now represents 50% of the total construction machinery market, compared to 35% a decade ago, Volvo said, and it expects this growth to continue.
Thomas Bitter, Volvo CE鈥檚 head of technology, will take on the role as head of the Compact Business Unit from September 2023.
He said: 鈥淥ur pioneering work in electrification and digitalisation has positioned us as an innovator in compact equipment. And now because of compact equipment鈥檚 ever-growing influence on the market, we are focusing our attention on our compact machine portfolio to provide customers with productive and sustainable products and services. The people who join us in this journey will not only develop specialized skills in this important area but be playing an integral role in our wider purpose of building the world we want to live in.鈥�
Heidelberg accord
In a separate initiative, Volvo Group has signed an agreement to collaborate with Heidelberg Materials, one of the largest building materials companies in the world, to explore the scope for battery powered vehicles and machinery.
The six-month feasibility study will be carried out this year to determine which emission-free vehicle technologies and charging infrastructure solutions would best suit the requirements of Heidelberg Materials.
鈥淲hile we are focused on reducing carbon emissions for both our products and our own operations, we are also committed to helping our customers lead by example through innovative collaborations that deliver much-needed change,鈥� said Martin Lundstedt, president and chief executive of Volvo Group.
As part of this agreement, Volvo Group鈥檚 battery-powered solutions 鈥� a mix of electric trucks and construction machinery 鈥� will be put to work in several Heidelberg Materials鈥� sites and quarries. One example of the equipment that will be employed by Heidelberg Materials is Volvo Construction Equipment鈥檚 recently introduced 20-tonne L120H Electric Conversion wheeled loader.
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