Driving forward Volvo Construction Equipment

DRIVING FORWARD

As Volvo Construction Equipment celebrates its 180th anniversary, Abigail Saltmarsh learns more about its ongoing success.

Tomas Kuta, president of the company’s EMEA (Europe, Middle East and Africa) sales region

Volvo Construction Equipment (Volvo CE) may have a long history but, says Tomas Kuta, president of the company’s EMEA (Europe, Middle East and Africa) sales region, its continued success is down to its determination to keep moving forward.

The company, which is known for its innovative, reliable and highly productive machinery, expects to see high levels of continued growth as it responds to the demands of global markets for ever more efficient equipment and higher levels of customer support.

Mr Tomas says, “We now have a full range of construction equipment suitable for customers from civil and road construction through to light mining, quarrying, recycling, utility works, pipelaying (oil, gas and water) and the forestry industry.”

He continues, “We feel we are now in a very good position to make the most of the growth in the markets and that, while we will be looking at a future where we continue to focus on sustainability and technology, we will also move forward with an increasing emphasis on customer support.”

Rolling on

Part of the global Volvo Group, Volvo CE has its beginnings in a small engineering workshop opened in Eskilstuna, Sweden, in 1832, by Johan Theofron Munktell. The company initially specialised in printing presses and tool machinery, such as lathes, drills and grinding machines, but in 1906 it produced its first construction machine: a steamroller.

Over the years, the operation has grown. Since the mid 20th century, it has seen major acquisitions and mergers, generating two entirely new market segments.

In 1954, it launched one of the industry’s first wheel-loaders. With its pioneering parallel lift arm system and quick coupling attachment bracket, the game-changing machine made heavier loads and higher breakout forces possible. And in 1966, after customers demanded an all-terrain hauler that could negotiate difficult conditions, Volvo gave them the world’s first series-manufactured articulated hauler.

Innovations

Since then, there have been major innovations in a number of areas. In 2007, for example, Volvo CE introduced CareTrack, a telematics-based system that uses global positioning and data transmission to provide customers with remote access to a whole host of machine data. “The CareTrack system enables customers to maximise efficiency and pinpoint any operating anomalies that might, in turn, highlight a pending mechanical issue,” says Tomas.

Then, in 2008, Volvo CE brought out a range of five 20- to 50-tonne pipelayers. Adapted from a proven excavator design and featuring modern lifting technology, the pipelayers represented a revolutionary departure from traditional tracked tractors with side booms: instead, they offered a 360-degree swing with full lifting performance and functionality at all radius positions.

OptiShift technology was introduced on Volvo CE’s largest wheel-loader models in 2011. With functions to reduce engine revs in long-distance hauling and to create smoother direction changes with automatic braking, this makes wheel-loaders up to 15 per cent more energy efficient.

“In mining, we have equipment suitable for small to mid-level mines and some quarries, and our innovative equipment for overburden stripping in mines is proving highly successful where other trucks are often getting bogged down. We supply them to customers right across the world, in places like Indonesia, South Africa and Australia,” says Mr Kuta.

Global development

“Volvo CE is now in a prime position to make the most of growth in Russia, Africa, China and Latin America, as well as Europe and North America,” he continues. While global urbanisation is seeing massive potential in emerging markets, as more and more infra-

structure is required, there is also increasing demand from more mature markets.

“Europe is still the engine, and our core market for EMEA. In Norway, for example, there is still significant growth and elsewhere there is still a huge need for the development of infrastructure. It is often down to funding, willingness and political decision making,” says Mr Kuta.

Elsewhere, a new excavator facility is set to open in Russia. This represents one of Volvo CE’s biggest investments of recent times and will see the launch of an operation that will primarily serve the Russian market.

“This is where we are expecting to see significant growth in EMEA next,” he says. “There is still a real need for infrastructure there. Turkey and parts of the Middle East, like Saudi Arabia, also hold great potential and Africa, of course, where countries such as Algeria and Nigeria have income from oil for development.”

He goes on: “Longer term, I think we will see increasing demand from Kazakhstan, Iraq, Angola and Libya. Once they are stable enough, development can and I am convinced will take place.”

Environmental responsibilty

The key for Volvo CE, he suggests, is to be ready to meet the needs and demands of customers in those markets when the time is right. Vital engineering talent is starting to emerge from many of the markets that are seeing fast urbanisation, so having a local presence and being able to offer the

right training will ensure expertise where it is needed for the future.

For the future, there also needs to be a major emphasis on sustainability. Volvo CE, like the rest of the Volvo Corporation, is committed to both environmental and social responsibility.

“We have won all kinds of awards for our approach, and together with our joint-venture company SDLG we were the world’s first construction equipment manufacturers to join the Worldwide Fund for Nature’s (WWF) Climate Savers programme.”

Keys to the future

Indeed, Volvo CE is determined to demonstrate its commitment to reducing the environmental impact of its production processes and its equipment. It aims to reduce CO2 emissions from production plants by 12 per cent from 2008 levels and to reduce total lifetime CO2 emissions from vehicles sold between 2009 and 2014 by more than 30Mt compared to 2008 models, via improved fuel efficiency.

“Our other prerequisite for the future is going to be customer service,” stresses Mr Kuta. “We need to ensure that we have premium distribution systems and the highest levels of competence in parts and technical support. We need to offer a highly professional and efficient one-stop shop, where our customers can access everything they need, including support.”

And he adds: “There is also a lot happening in terms of communication. Through telematics, we will keep improving online accessibility for our customers as I believe this aspect of support will be vital for their businesses going forwards and therefore our future development too.” n