STOCKHOLM, March 17 (Reuters) – Volvo Group said it will shut down its loss-making Rokbak haulers business within its construction equipment (CE) unit, citing persistent supply chain challenges and trade barriers impacting exports from Britain.
Volvo Group, one of the world’s largest makers of trucks, buses and construction equipment, said the closure of Scotland‑based Rokbak will reduce operating income in the CE segment by about 0.7 billion Swedish crowns ($75.3 million) in the first quarter.
* Inflation, rising supply‑chain costs and increased tariffshave made it harder for manufacturers to sustain less‑profitableproduct lines, prompting companies such as Volvo to close orconsolidate operations to cut costs. * Rokbak’s 2025 revenue was around 1 billion crowns, and theunit had been loss‑making for an extended period, withperformance deteriorating further after January 2025, a Volvospokesperson told Reuters. * “With this being in Scotland and hence outside of the EU,there are a lot of extra work to get those machines out andabout right now, so a challenging environment for them toexport,” the spokesperson said, adding that Scotland and Englandwere not large enough markets to sustain the operation. * Production of Rokbak articulated haulers is expected toconclude in the second half of 2026, with the full closure ofthe unit anticipated by the third quarter of that year. * Volvo said the Motherwell facility near Glasgow willcontinue as a hub for designing and manufacturing its rigidhaulers and for developing future product lines.
($1 = 9.3095 Swedish crowns)
(Reporting by Marie Mannes and Essi Lehto, editing by Stine Jacobsen)