Volvo Construction Equipment wins $30 million plant supply contract
Volvo is set to deliver a range of construction equipment to aid the rebuilding of Iraq
Volvo Construction Equipment has been awarded US $30 million worth of contracts by the United States government to build and deliver over 200 units of construction equipment to the Iraqi government to be used in the country’s reconstruction.
The contracts, which are to be completed in two years, call for the delivery of 120 Volvo L120E wheel loaders, 28 Volvo EW180B wheeled excavators, 50 Volvo G710B motor graders and 10 Volvo BL70 backhoe loaders. Manufacture and assembly of the construction equipment will take place at Volvo CE plants in Sweden, Canada, Germany, Poland and the United States.
Delivery of the equipment will begin in November 2004 with an initial order of 60 wheel loaders, 3 wheeled excavators, 22 motor graders and 2 backhoe loaders. The construction equipment will be shipped to the Iraq cities of Baghdad and Basrah and is owned by and under the control of Iraqi ministries.
“The primary reasons for the selection of Volvo products included its building of equipment to high performance specifications and standards, equipment with the capabilities of operating efficiently in extremely tough physical working conditions. And we are also able to meet very strict and critical delivery time requirements,” said James Peesker, director of Governmental Sales for Volvo Construction Equipment North America.
Volvo CE has been operating in Iraq for many years and has developed a working relationship with both local and regional Iraqi leaders. The company has also been able to move shipments of equipment with local approval and assistance to final destinations within the country and has equipment support capabilities in place. Only companies within the World Trade Organization or in the coalition countries engaged in Iraq were eligible to bid for these contracts.