AB Volvo acquires a Chinese automotive company for $125.7 million

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AB Volvo announced on Monday that it has reached an agreement to purchase JMC Heavy Duty Vehicle Co. Ltd., a subsidiary of Jiangling Motors Co. Ltd., for roughly 1.1 billion Swedish crowns ($125.7 million). A substantial development in logistics services, particularly e-commerce, has boosted Volvo truck sales in China over the past few years, according to the Swedish truck manufacturer.

“In line with the long-term Volvo Group strategy, Volvo Trucks is therefore expanding its business operation in China,” Volvo said in a statement.

One of Volvo’s new heavy-duty truck factories will be located in Taiyuan in China, where the company plans to begin production of its new heavy-duty trucks by the end of next yearIn a few years, the plant will be able to produce 15,000 Volvo trucks per year, with the possibility to boost capacity further, according to Volvo.