Volvo Construction Equipment - International Report - cooperation agreement with Komatsu Ltd - Brief Article

Diesel Progress North American Edition, May, 2002 by Mike Mercer

Beginning a process that was announced late last year, Volvo Construction Equipment, (Volvo CE) has signed a cooperation agreement with Komatsu Ltd. for the production and development of construction equipment components. Under the agreement, Volvo CE will produce Komatsu-designed wheel loader cabs at its plant in Hallsberg, Sweden.

Production will start in early 2003 and some 1500 units will be produced per year. The agreement reportedly will not include cooperation in sales, service, distribution and equity participation. This agreement is the first resulting from ongoing talks which started last November. One previously announced item under discussion is the possibility of collaboration in the supply and development of drivelines except engines. Volvo said these talks are expected to be concluded this autumn.