Volvo CE opens new facility to support production of electric wheel loaders

The construction industry’s shift takes another step forward as Volvo CE inaugurates a new, state-of-the-art manufacturing facility to support the production of electric wheel loaders at its plant in Arvika, Sweden.

The new facility is the latest expansion for the Arvika site, which already manufactures medium and large wheel loaders. The new facility measuring approx. 1,500 sq. m (over 16,000 sq. ft.), and was built in less than a year, following an investment of SEK 65 million ($6.3 million) in 2023.

The expansion is technically an after flow facility, where nearly finished loaders comes off the regular assembly line for completion and testing. This allows Volvo to free up areas inside its existing factory and more readily enable the production of electric wheel loaders alongside more conventional, ICE-powered units.

“This new facility is an inspiration for a future built on sustainable solutions,” explains Melker Jernberg, Head of Volvo CE. “We are proud to be at the forefront of industry change with large-scale investments, not just here in Arvika but around the globe, that support a transformation towards electrification. Together, we are moving closer towards fossil-free machines.”

Volvo is calling the new expansion a first step in electrification for the site, but notes that it’s part of a wider transformation strategy to reduce the company’s internal climate footprint by 350 tons of CO₂ through a variety of emission reduction efforts already in progress.

“Action on climate change is nothing new to us here in Arvika, but it is incredibly exciting to see our vision come to life with these new facilities,” says Mikael Liljestrand, General Manager at Arvika. “We now have the framework in place to drive electrification and expand our growing global portfolio of electric wheel loaders. This will have a positive impact on our industry and society as a whole, but it is also a personal journey for each of us here in Arvika who are playing a significant role in building a more sustainable future.”

Electrek’s Take

The improved Volvo production site was given the royal welcome with a visit by Prince Carl Philip, a member of the Swedish royal family, and Duke of Värmland, where the site is located – and remembering that Sweden still has a royal family always trips me out a bit.

That said, one of the biggest obstacles to broader fleet electrification remains availability of electrified assets. A fleet like PITT Ohio that wants to order 100 electric Volvo Trucks might have to wait eighteen months or more, when a comparable diesel order may take six months to fill. The same is true on the equipment side.

More production, and more availability, will mean more fleets giving electric solutions a shot – and that’s what we need.

SOURCE | IMAGES: Volvo CE, via Construction Equipment.