Volvo Ghent unveils investment plan

Swedish truck builder Volvo plans to invest “several million” euros in its factory in Ghent, in a move designed to turn the site into the company’s largest for trucks over 16 tonnes. The plan also involves the removal of production lines for medium-sized trucks to a factory in France. Volvo Ghent last year produced 29,100 heavy trucks, but only 4,203 medium-sized.

The investment will involve increasing capacity at Volvo Ghent to allow construction of the company’s full range of heavy trucks and cabins. Volvo was unable to put a figure to the investment, but said it would be more than the sum invested in 1997, which was €25 million.

The factory employs 2,500, among them about 200 on medium-sized trucks. The consequences for workers of the investment have to be discussed with unions, the company said, but those involved in the medium-sized trucks division have been given an assurance they will be redeployed in jobs elsewhere in the facility. Unions said they would consult with members before making any comment.