STOCKHOLM, Aug 23 (Reuters) – AB Volvo said on Monday it had struck a deal to buy Chinese JMC Heavy Duty Vehicle Co. Ltd., a subsidiary of Jiangling Motors Co. Ltd, for about 1.1 billion Swedish crowns ($125.7 million).
The Swedish truck maker said the strong growth of logistics services, including e-commerce, had boosted sales of Volvo trucks in China in recent years.
“In line with the long-term Volvo Group strategy, Volvo Trucks is therefore expanding its business operation in China,” Volvo said in a statement.
The acquired business, includes a manufacturing site in Taiyuan, China, and Volvo said it aimed to start production of its new heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks there at the end of next year.
The plant will have the capacity for annual production of 15,000 Volvo trucks within a few years, with potential to increase capacity further, Volvo said.
($1 = 8.7506 Swedish crowns)
Reporting by Helena Soderpalm, Editing…