Volvo to divest ABG Paver business
By Adam FreillConstruction Equipment
Volvo Construction Equipment selling brand to Ammann, including production and technology centre in Hameln, Germany.
Volvo Construction Equipment (Volvo CE) and the Ammann Group have reached an agreement for the Ammann Group to acquire Volvo CE’s global ABG Paver Business, including ABG facilities in Hameln, Germany.
The Ammann Group intends to expand their business and invest in ABG Pavers, which are not currently sold in North America. In a statement from Volvo, the company explained that the divestment includes the ABG Paver production and technology centre in Hameln, Germany, and will ensure the availability of the range and full support through the Ammann Group distribution channels and selected Volvo CE dealers.
As a consequence of the sale, production of Volvo CE compaction equipment in Hameln will be phased out over time.
Volvo CE says the agreement will benefit both companies by strengthening the product portfolio and distribution network of the Ammann Group, while allowing Volvo CE to continue to focus on developing sustainable solutions and future technologies and services, in line with the company´s strategic direction.
The transaction is subject to regulatory approvals and works council consultations, and is expected to close in the first half of 2024.