Volvo Construction Equipment November 27 announced that Shandong Lingong Construction Machinery Co., Ltd. (SDLG), a unit, will build a production base in Sao Paulo, Brazil. The facility will manufacture four excavator models and is supposed to come into production in 2013.

Volvo Construction Equipment worldwide president Olney shows that SDLG has made progress since expanding Brazilian market started 2009. Wheel loaders have been launched and excavators have been made in Brazil, indicating the Brazilian market takes further turf in SDLG's business. SDLG is in a leading position by export volume and market share in the South American country among Chinese brands.

Olney states that China remains the largest market across the globe and is core market for Volvo Construction Equipment despite construction equipment market is weak this year.