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Volvo Ramps Up Production at New Mexican Backhoe Facility

Following an initial start-up phase, production of the BL60 and BL70 center-mounted backhoe loaders at Volvo Construction Equipment's modern plant in Mexico is now in full operation. The facility, located 25 miles north of Mexico City and shared with sister company Volvo Bus, is equipped to meet the growing demand, in the North American and Latin American markets, for backhoe loaders. These markets were previously supplied from Volvo's factory in Wroclaw, Poland, but the move to Mexico not only significantly reduces delivery lead times, it also allows the requirements of these markets to be more efficiently met.

In addition to reduced delivery times and shipping costs, the move of production to Mexico also offers other benefits, such as a more streamlined supply chain, close proximity to major shipping routes and reduced production costs. The growing economies of Latin American countries and the expected upturn in the North American market were also important factors in the decision to launch production in Mexico.

Volvo Construction Equipment (Volvo CE) is a major international company developing, manufacturing, and marketing equipment for the construction and related industries. Its products, leaders in many world markets, include a comprehensive range of wheel loaders, hydraulic excavators, articulated haulers, motor graders, soil and asphalt compactors, pavers, milling machines, compact wheel loaders and excavators, and skid steer and backhoe loaders. Volvo CE is part of the Volvo Group.

The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services, and is one of the world's leading producers of heavy-diesel engines (9-18 liter). The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells their products in more than 180 markets. Volvo Group sales for 2008 amounted to over 46 BUSD. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo Shares are listed on NASDAQ OMX Nordic Exchange Stockholm and are traded OTC in the US.


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