Volvo Construction Equipment (Volvo CE) has reached an agreement to divest its ABG Paver business to the Ammann Group, including the ABG production and technology centre in Hameln, Germany.
The agreement will benefit both parties by strengthening Ammann’s product portfolio and distribution network, 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.
Based in Switzerland, Ammann is a leading global supplier of mixing plants, machines and services for the construction industry with core expertise in roadbuilding and transportation infrastructure, which the company intends to develop further through the ABG Paver business expansion.
According to Volvo CE, the number of its employees impacted as a result of this announcement is approximately 400. With the acquisition, production of Volvo CE compaction equipment in Hameln will also be phased out over time.
Customers will continue to have access to the ABG paving range, as well as aftermarket and other services, through Ammann dealer network and some selected Volvo CE dealers.
In a separate statement, Ammann said the transaction includes the transfer of Volvo CE’s paving businesses in Linyi (China) and Bangalore (India) as well as the ABG facility in Hameln.
“This strategic acquisition completes the depth of our product offerings and makes the solutions we offer customers more comprehensive,” said Hans-Christian Schneider, CEO of Ammann. “The acquisition will also position Ammann with a suite of solutions, covering everything from asphalt plants to paving and compaction.”
In addition, Ammann will leverage its industry knowledge and customer relationships to guide development of the pavers, with ABG in Hameln becoming the Centre of Excellence for paving operations within the group.
The transaction is expected to be completed in the first half of 2024.