Volvo 2007 Annual Report Download - page 28
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Please find page 28 of the 2007 Volvo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report. Net sales,
Company Acquired Operations SEK bn1
Samsung Heavy Industries 1998 Excavators 2.0
Nissan Diesel 2007 Trucks and buses 27.3
Lingong 2007 Wheel loaders 2.0
Ingersoll Rand Road Development 2007 Road development equipment 6.4
Eicher Motors Ltd 20072 Trucks and buses 3.0
1 Approximate net sales at the time of the acquisition.
2 Letter of intent regarding a joint venture signed in the fourth quarter of 2007.
ute to further strengthen Lingong and to study
the opportunities of selling Lingong’s equip-
ment in other emerging markets in Asia,
among others.
“Lingong is a long-term, strategic invest-
ment that will strengthen Volvo CE’s position
in the Chinese market for construction equip-
ment. We are here to stay and the cooperation
with Lingong is an important step towards
realizing our vision for China and implement-
ing our global strategy”, says Tony Helsham.
In addition to 16 different models of wheel
loaders, Lingong has a smaller range of back-
hoe loaders, road rollers and excavators. The
cooperation makes it pos-
sible for Volvo CE to offer
its customers products that
lie beyond the current pre-
mium segment. At the same
time, Volvo CE will continue
to develop and manufac-
ture wheel loaders for the
premium segment in the
plants in Eskilstuna and
Arvika in Sweden, Asheville in the US and
Pederneiras in Brazil. Volvo CE already has a
wholly-owned subsidiary for the production of
excavators outside Shanghai, China.
Ingersoll Rand Road Devlopment
In 2007, the Volvo Group also acquired American
Ingersoll Rand’s division for road development
equipment. The business includes heavy
compactors, pavers and asphalt millers.
The division has manufacturing in the US,
Germany, India and China and approximately
2,000 employees. Its headquarters are
located in Shippensburg, Pennsylvania in the
US. During May to December 2007, the busi-
since 1998, when the South Korean excava-
tor manufacturer Samsung Heavy Industries
was acquired.
“We learned a great deal from the work
conducted to bring Samsung into the Volvo
Group. The key is ensuring that we work
together as quickly as possible. We believe
that it is important to keep a good deal of local
management. We also make sure to offer the
employees the possibility of working in other
parts of Volvo CE. We view cultural diversity as
a strength,” says Tony Helsham, President of
Volvo Construction Equipment.
To teach employees, suppliers, dealers,
politicians and other stakeholders in Linyi
about Volvo and what the Group stands for, an
exhibition about Volvo was built at Lingong’s
factory and has received some 10,000 visitors.
Efforts are now under way to review what
Volvo Construction Equipment should contrib-
Lingong strengthens position in China
The Chinese wheel loader manufacturer Lin-
gong, of which the Volvo Group owns 70% as
of 2007, has been given a clear place in the
Construction Equipment business area and
is its own business line in much the same
way as excavators and haulers/wheel loaders.
Lingong, with an annual
turnover of SEK 2 billion,
has manufacturing in Linyi
in the Shandong province
of China and a compre-
hensive network of dealers
nationwide. The Chinese
market for wheel loaders is
the world’s largest. Last
year, slightly more than
100,000 wheel loaders were sold – most of
domestic manufacture. Lingong is third in
the market with sales exceeding 18,000
wheel loaders.
Lingong is the fi rst major acquisition car-
ried out by Volvo Construction Equipment
24 A global group 2007
India is already one of the world’s largest
truck markets and forecasts indicate that the
very strong growth will continue. Major invest-
ments in improved infrastructure as well as
more stringent regulations on load weights will strongly
drive demand for heavy trucks, making the market particu-
larly attractive to the Volvo Group, says Leif Johansson.