Another local construction machinery brand "to the sea." Yesterday, Volvo Construction Equipment Group announced in Shanghai that its subsidiary Shandong Linggong was preparing to build a production base in Sao Paulo, Brazil, and produce four excavators, which are expected to be put into operation in 2013.
Olney, president of Volvo Construction Equipment Group, said that since Shandong Lingong opened up the Brazilian market in 2009, it has achieved remarkable results. The wheel loader has been introduced to the Brazilian market. After the excavator has achieved local production in Brazil, it means that the weight of Brazil’s market share in the temporary labor market has further increased. At present, the export volume and market share of Lingong’s construction machinery products in Brazil ranks among the top among Chinese brands.
Volvo Construction Equipment Group has implemented the dual-brand strategy of "Volvo" and "Lingong" since it acquired Linggong in 2006. The two brands sold a total of 36,000 units in the first 10 months of this year, occupying a market share of 13.7% in the Chinese market and more than 180 dealers across the country. Up till now, Volvo CE has invested a total of RMB 1 billion in the Chinese market to expand its production capacity and enrich product lines.
In view of the current sluggish construction machinery market this year, Olney said that even so, China is still the world's largest market and is also the core market of Volvo Construction Equipment Group. He expects the growth rate to be relatively flat next year and will improve in the second half of the year.
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