Benzinga - by FreightWaves, .
Sweden's Volvo Group (OTC: VLVLY) announced Thursday that it will construct a heavy-duty truck manufacturing plant in Mexico.
The plant will supplement the company's U.S. production. The facility will support the company's growth plans for Volvo Trucks and Mack Trucks in the U.S. and Canadian markets and support Mack truck sales in Mexico and Latin America.
It is expected to begin operations in 2026.
The Mack Lehigh Valley Operations (LVO) plant in Pennsylvania and the Volvo New River Valley (NRV) plant in Virginia will continue to be the company's main North American heavy-truck production sites, the company said. Volvo has invested more than $73 million over the past five years in LVO expansion and is planning to spend $80 million for future production. The NRV plant is completing a $400 million expansion ahead of the new Volvo VNL model.
The plant in Mexico will be about 1.7 million square feet and will be a complete conventional vehicle assembly facility, including cab body-in-white production and paint, the company said.
Volvo reported a 10% increase in fourth-quarter sales last year. Quarter-one results for 2024 will be shared later this month, the company said.
A Volvo spokesman didn't immediately respond to an inquiry about the new plant.
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