Volvo Vans to amass China’s JMC, construct new plant
Sweden’s Volvo Vans this week introduced it has agreed to amass Chinese language truck-maker JMC Heavy Obligation Automobile Firm Ltd in a deal value CNY800m (US$123m), because it appears to be like to additional strengthen its gross sales within the Asia-Pacific area.
JMC Heavy Obligation Automobile is a subsidiary of Jiangling Motors Firm Ltd with a producing plant in Taiyuan in China’s Shanxi province. Volvo Vans stated it plans to spend money on a brand new plant on the similar web site in Taiyuan to provide its new FH, FM and FMX fashions for the native market from the top of 2022.
The corporate stated it is going to spend money on new stamping, welding, cab-manufacturing, portray and the ultimate meeting services for Volvo Vans, with an annual capability of 15,000 vans within the preliminary section – with the potential for additional enlargement afterward.
The Swedish firm stated its gross sales in China have grown strongly in recent times resulting from surging demand for logistics providers within the nation, to achieve 4,500 imported heavy-duty vans in 2020.
Roger Alm, President Volvo Vans, stated in a press release “we’re dedicated to shaping the way forward for sustainable transport options. With our long-standing presence in China, we’re rising our gross sales and we’re increasing our robust community of gross sales and repair factors along with our personal supplier companions”.
He added “over the past couple of years we’ve got seen a quick growth of the logistics markets and an rising demand for our premium vans and providers. To satisfy the demand from Chinese language transport operators, the time is correct for us to ascertain a regional worth chain with our personal heavy-duty truck manufacturing in China”.
Whereas the Chinese language truck market remains to be dominated by native producers reminiscent of SinoTruck, FAW Jiefang, Dongfeng Motor, Foton and JAC, which supply extra price-competitive autos, European producers want to faucet into rising demand for premium vans and providers.