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
Volvo to Shutter Rokbak Scotland Unit Amid Supply Chain, Trade Challenges
Volvo Group Announces Closure of Rokbak Haulers Business
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.
Key Factors Behind the Closure
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Inflation and Supply Chain Costs
Inflation, rising supply‑chain costs and increased tariffs have made it harder for manufacturers to sustain less‑profitable product lines, prompting companies such as Volvo to close or consolidate operations to cut costs.
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Financial Performance of Rokbak
Rokbak’s 2025 revenue was around 1 billion crowns, and the unit had been loss‑making for an extended period, with performance deteriorating further after January 2025, a Volvo spokesperson told Reuters.
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Export and Market Challenges
"With this being in Scotland and hence outside of the EU, there are a lot of extra work to get those machines out and about right now, so a challenging environment for them to export," the spokesperson said, adding that Scotland and England were not large enough markets to sustain the operation.
Timeline and Future Plans
Production and Closure Schedule
Production of Rokbak articulated haulers is expected to conclude in the second half of 2026, with the full closure of the unit anticipated by the third quarter of that year.
Motherwell Facility’s Continued Role
Volvo said the Motherwell facility near Glasgow will continue as a hub for designing and manufacturing its rigid haulers and for developing future product lines.
Financial Impact
($1 = 9.3095 Swedish crowns)
Reporting Credits
(Reporting by Marie Mannes and Essi Lehto, editing by Stine Jacobsen)
