Volvo Trucks is opening a new factory in Durban, South Africa. At the same time operations are being closed down at the assembly plant in Botswana. Underlying the decision is the call for shorter lead times and lower freight costs.
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Volvo Trucks has assembled CKD-kits (Completely Knocked Down) in Botswana since 2000, when the company took over the factory from the previous Volvo importer.
The bulk of the trucks manufactured at the factory have been intended for the growing South African market and, as a result of the move to South Africa, lead times have been reduced significantly.
Work on preparing the new plant in Durban has started, and as early as December the first truck will roll off the production line. Last year Volvo Trucks sold almost 1,000 trucks in South Africa.
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By GlobalData
