Volvo Construction Equipment - to sell 65% of Mecalac Construction Equipment to Henri Marchetta - Brief Article

Diesel Progress North American Edition, May, 1999 by Chuck Kondor

Volvo Construction Equipment said it has reached an agreement to sell 65 percent of its Mecalac Construction Equipment business to Henri Marchetta, who is currently president of Volvo CE's Compact and Service Equipment Co. It is anticipated that Volvo will sell the remaining 35 percent within three years. Volvo acquired the company three years ago in connection with the acquisition of the Pel-Job mini-excavator company in France. Included in the sale are Mecalac's production facilities in Annecy, France; Hydromo S.A.; and the Paris branch of Framateq S.A. "Mecalac is a very good product mainly sold in Western Europe," said Tryggve Sthen, president of Volvo Construction Equipment. "However, we are a global company and our strategy is to focus on global products."

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