Owners
Divisions
- Volvo Construction Equipment is Volvo's division for the sale of construction equipment, mechanisms: excavators, wheeled loaders, self-propelled graders, articulated dump trucks, compact equipment, rollers and asphalt pavers.
Performance indicators
2022: Losses of $420 million due to withdrawal from the Russian market
Volvo Group estimated its losses from the business shutdown in Russia at 4 billion Swedish crowns (about $420 million) in the first quarter of 2022. This amount is deducted from the company's operating profit. The Swedish manufacturer of trucks and special equipment announced this on April 8, 2022.
According to the company's estimates, the total amount of Volvo Group assets related to Russia by April 2022 is about 9 billion Swedish crowns (more than $950 million), of which about 6 billion Swedish crowns (more than $630 million) are cash related to leasing business financed through the bond market. In 2021, Russia accounted for about 3% of the group's net sales, according to its statement.
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Prior to that, Volvo Group announced a shutdown in Russia at the end of February 2022, the company developed several projects in the country in the Kaluga-Yug industrial park, among them are the Volvo truck production plant, the Volvo Truck Center Kaluga truck service center, Volvo Customs Department, Volvo Construction Equipment Excavator Plant, Volvo Group Cab Factory factory for the production of cabins for Volvo and Renault trucks.
In early March 2022, Volvo Group sent a significant part of the employees of its Kaluga plant to idle for an indefinite period with salary preservation.
 | These measures are necessary in terms of the ability to quickly restore the production cycle of conveyor lines in the event that the Volvo plant in Kaluga resumes the production of trucks, the Swedish manufacturer said in a statement.[1] |  |
2021: Sales of 5,692 trucks (+ 31 %)
According to Volvo Group's own data, in 2021 the company sold 5,692 new trucks in Russia, which is almost a third (31%) more than sales a year ago.
History
2023
Resumption of plant operation
On December 7, 2023, the Governor of the Kaluzhskaya Region Vladislav Shapsha announced that the production of trucks at the former Volvo production site in Kaluga was resuming. The company was named "Automobile Motor Society" (AMO). It has already begun the temporary assembly of a large-capacity Russian off-road truck.
The government of the Kaluga region informed that the launch of production was discussed at a meeting of the governor with the general director of the Industrial Investments group of companies Andrei Alexandrov and the executive director of the AMO machine-building plant in Kaluga Roman Petryaev. During the meeting, the prospects for the development of the enterprise were also discussed.
In the future, it is planned to expand the range of auto products and increase production volumes. AMO is working to attract industrial partners, including from Asian countries, the board added.
The Industrial Investments group of companies unites developers and manufacturers in the market of road construction, agricultural and special machines, as well as a network of service centers in the regions of the Russian Federation. The group, in addition to AMO, in particular, includes the UMG brand of road construction equipment (SDM LLC, an early member of the United Machine-Building Group, OMG), the new metallurgical business LLC Casting and Forging (Nizhny Novgorod), leasing LLC Spetstekhnika Leasing (Moscow).
According to Interfax, citing data from the Unified State Register of Legal Entities (USRUL), the group's parent company, Industrial Investments JSC, with an authorized capital of 200 thousand rubles, was registered in Moscow in May 2023. The owners of the company were not disclosed. Its general director is Andrei Alexandrov. Previously, he held key positions in large Russian and international companies, including in the OMG structure.[2]
Industrial Investments Group buys Volvo truck plant in Russia
The owner of the Kaluga truck assembly plant of the Swedish Volvo Trucks was the Industrial Investments group. The governor of the Kaluzhskaya region Vladislav Shapsha announced this on October 26, 2023.
| | At the site of one of the enterprises - the former Volvo plant - they visited Albert Karimov [deputy head of the Ministry of Industry and Trade - approx. TAdviser]. The new owner, the Industrial Investments Group of Companies, comes into its own, he wrote on his Telegram channel. | |
As Interfax writes on October 26, 2023, Industrial Investments is a newly created group of companies that unites leading developers and manufacturers in the market of construction, road, agricultural and special machines. The interlocutor of the agency said that the group is associated with millionaire Dmitry Strezhnev, a former co-owner of Eurochem.
In addition, the party to the transaction, according to Interfax, will also be the recently created Automobile Motor Society JSC (AMO). Its founder Georgy Pilipenko is a former co-owner (14%) of Techmash and a former general director of Invest-Avtovolga, follows from the data of SPARK-Interfax. The beneficiary of both companies is Strezhnev.
The company plans to complete the deal by the end of November 2023, the agency's source said. In the short term, the owner of the enterprise wants to load capacity with the production of Russian-made trucks. The Ural Automobile Plant may act as one of the partners. In the long term, the plant plans to attract foreign partners, including from Asian countries.
The Ministry of Industry and Trade, together with its domestic industrial partner, is implementing a plan of measures aimed at restarting production at the Volvo Kaluga site as soon as possible, a ministry spokesman told Vedomosti.
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Options for further expansion of production and nomenclature of products are also being worked out with all interested parties, he added.[3] | |
Ministry of Industry and Trade: Volvo assets in Russia transferred to Russian investor
On September 8, the Ministry of Industry and Trade announced the transfer of Volvo's Russian business to a local investor. At the same time, the name of the latter was not disclosed in the department.
| | The assets of the Volvo automaker in Russia were transferred to a Russian investor. The Ministry of Industry and Trade of Russia, together with the new owner, also identified a domestic partner for the further development of production at the Kaluga site of the concern, work continues to restart it as soon as possible, the ministry said in a statement. | |
According to Kommersant, citing data from the Unified State Register of Legal Entities (USRUL), Volvo's assets in the Russian Federation came under the control of businessman Igor Kim. On September 6, 2023, Alexey Sannikov, the first deputy chairman of the board owned by Igor Kim Expobank, as well as a businessman's partner, became the general director of the Volvo Trucks plant (JSC "Wastewater Machinery Equipment"). The Volvo Trucks plant is also owned by AB Volvo (75%) and Volvo Trucks Region CE Gmbh (25%).
Volvo AB leasing company (LLC "Drains Financial Services," formerly Volvo Finance Service Vostok LLC), specializing in financial leasing of trucks, buses and construction equipment Volvo and Renault Trucks, was headed by another partner of Kim - investment banker, co-founder of the ExpoCapital fund Nikita Ryauzov. R
Also, under the leadership of Ryauzov, LLC Drokov Finance (formerly Volvo Finance Vostok), controlled by the company headed by him, was transferred. By September 8, 2023, Effluent Financial Services LLC still belongs to the structures of the Swedish concern - VFS International AB (99.88%) and Volvo Financial Services GmbH (0.11%), Interfax notes.
According to the agency, by the beginning of September 2023, Kim received direct control only in one of the Russian divisions of Volvo - LLC "Waste Construction" (previously - LLC "Volvo Construction Equipment East"). This company also specializes in the production, leasing and sale of special equipment. According to the Unified State Register of Legal Entities, on September 6, the Aston Group controlled by Kim gained control of 99% of the company. Co-owner of 1% is a legal entity of the Kaluga Automobile Plant.
2022
Exploring options for optimizing business in Russia, including selling
In October 2022, Volvo Group, which has ceased production of trucks in Russia since the end of February 2022, is considering various options for optimizing its business, including its full or partial sale. The carmaker's Russian assets include welding and painting factories, as well as the assembly of trucks for 15,000 pieces of equipment per year in Kaluga and four service centers for their maintenance in different cities of the country.
Suspension of business in the Russian Federation against the background of Russia's special operation in Ukraine
On February 28, 2022, information appeared that against the background of Russia's special operation in Ukraine Swedish companies Volvo, Scania and Ericsson are suspending business in Russia.
In early July 2022, it became known that Volvo Group decided to reduce its staff in Russia. The plant of the truck company in Kaluga is idle - Volvo cannot assemble cars due to EU sanctions on the supply of components.
1998: Volvo Vostok Organization
Volvo Vostok CJSC was organized in 1998.
Notes
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