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Sweden’s PM breaks ground on new Volvo CE factory
17 June 2026
(L-R): Martin Lundstedt, Volvo Group, minister Ebba Busch, prime minister Ulf Kristersson and Volvo CE president Melker Jernberg (Image: Volvo CE)
Work has officially begun on Volvo Construction Equipment’s (Volvo CE) new excavator factory in Eskilstuna, Sweden, with the Swedish prime minister and the deputy prime minister marking the occasion during an official ceremony.
The new factory, set for completion in 2028, is expected to create jobs and drive growth in the Mälardalen region. It will also support innovation and industrial capacity for Europe in an increasingly competitive global market, said Volvo CE.
With around 40% of the company’s total production hours based in Sweden, the SEK 700 million (€64.3 million) investment forms part of Volvo CE’s long-term strategy to build closer to its customers and strengthen its regional presence.
During the visit, prime minister Ulf Kristersson and Ebba Busch, minister for energy, business and industry, tested wheel loaders and articulated haulers, before taking the controls of Volvo CE’s electric 23-ton excavators to help kick off work on the new factory.
“It really feels like coming home. I’m incredibly pleased to be here today and show how this proud heritage is being carried forward. I strongly believe in the close dialogue between business and politics that we have in Sweden – keep up the good work!” said the prime minister, who himself grew up in Eskilstuna.
“These yellow machines have quite literally built this country – from roads and mines to cities. At a time of increasing uncertainty, competitiveness is not just an economic issue. It is about independence, resilience and the ability to build our future with our own resources,” added minister Busch.
With the new factory, Volvo CE will manufacture all its key products in Sweden: articulated haulers in Braås, wheel loaders in Arvika, excavators in Eskilstuna and cabs in Hallsberg.
“By investing in new excavator production in Eskilstuna, we are strengthening our global competitiveness while creating jobs, developing technology, and reinforcing our strong industrial base in Sweden,” commented Melker Jernberg, president of Volvo CE.
The new facility will cover approximately 30,000 sqm and feature mixed module assembly for both electric and combustion-engine crawler excavators in weight classes ranging from 14 to 50 tons, with an annual production capacity of up to 3,500 machines.
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