STOCKHOLM, Aug 23 (Reuters) – AB Volvo stated on Monday it had struck a deal to purchase Chinese language JMC Heavy Responsibility Car Co. Ltd., a subsidiary of Jiangling Motors Co. Ltd, for about 1.1 billion Swedish crowns ($125.7 million).
The Swedish truck maker stated the sturdy progress of logistics companies, together with e-commerce, had boosted gross sales of Volvo vans in China lately.
“According to the long-term Volvo Group technique, Volvo Vans is due to this fact increasing its enterprise operation in China,” Volvo stated in a press release.
The acquired enterprise, features a manufacturing website in Taiyuan, China, and Volvo stated it aimed to begin manufacturing of its new heavy-duty Volvo FH, Volvo FM and Volvo FMX vans there on the finish of subsequent yr.
The plant may have the capability for annual manufacturing of 15,000 Volvo vans inside just a few years, with potential to extend capability additional, Volvo stated.
($1 = 8.7506 Swedish crowns)
Reporting by Helena Soderpalm, Enhancing by Niklas Pollard
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