Groundwork at the site could commence in H1 2026.
The facility will have annual capacity for up to 3,500 medium and large excavators (14–50 tonnes), covering both electric and internal-combustion models. The company has committed Skr700 million ($73.1 million) to the Eskilstuna project as part of a Skr2.5 billion global investment programme that also includes expansions in South Korea and the United States.
"This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry. It will significantly contribute to reinforcing Sweden's position as a leader in advanced sustainable manufacturing," said Melker Jernberg, President of Volvo CE.
The new plant will increase European production flexibility, shorten customer delivery times, and reduce transport-related carbon emissions by locating manufacturing closer to key markets.
"Bringing additional high-value production and utilising our cutting-edge technology in Eskilstuna, will support local job creation, skills development, and a continued collaboration with Sweden's strong network of industrial suppliers and research partners," Jernberg added.
The location was selected after thorough evaluation of logistics, land availability, and proximity to existing Volvo CE facilities that can support comprehensive customer services.
Construction remains subject to environmental and building permit approvals. If granted, site preparation could begin in the first half of 2026, with production targeted to start within two years of groundbreaking.
The investment aligns with Volvo CE's wider strategy to expand its excavator portfolio and strengthen regional manufacturing capabilities while enhancing responsiveness to European demand for both conventional and zero-emission equipment.
