The economic stability of East Africa seems to have convinced Volvo Trucks to strengthen its economic presence in the region. The truck subsidiary of the Swedish manufacturer has announced the establishment of an assembly plant in the Kenyan city of Mombasa. An installation that is part of an association between the multinational and NECST Motors, a Kenyan dealer that also plans to set up 20 workshops in the region.

The truck subsidiary of Swedish car manufacturer Volvo has announced its intention to strengthen its presence in East Africa. The first objective of Volvo Trucks management is to increase its market share in Kenya, Uganda and Tanzania by 2% from 16% to 18%. An ambition supported by the economic growth of the region that exceeds the average for the rest of sub-Saharan Africa.

Assembly unit

A commitment to the expansion was realized by a partnership between the Swedish giant and the Kenyan dealer NECST Motors for the establishment of 20 workshops in the region. An agreement that also includes the construction of a spare parts warehouse and the installation of a Volvo truck assembly line in the port city of Mombasa, an announcement of industrial implantation of Volvo following the announcement of the creation of a car assembly unit in India.

The infrastructures boom attracted Volvo

Predictions have encouraged Volvo to review its copy in East Africa. The priority given by the countries of East Africa to investments in infrastructure finally convinced the Swedish manufacturer to set up an assembly plant in Kenya.

The upsurge of public works and the beneficial impact it should have on the demand for heavy trucks and construction equipment reinforces the possibility for management to meet the internal objectives not to go below the bar of 10% market share.

At the level of the Kenyan market, Volvo intends to diversify its activities, adding construction industries and mining to its supply, in addition to long distance transportation which has been its main activity till now in Kenya. Volvo trucks are assembled in 15 countries around the world, with sales reaching 103,000 units in 2016. The Swedish manufacturer has also started an internal reorganization to reduce annual expenses of 1.1 billion.

Original Source : afrique.latribune.fr

 

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