Track manufacturer Volvo Group is planning to construct a US$ 24m assembly plant in Mombasa, Kenya as it seeks to expand its footprint in the East African region.
Volvo Trucks President Claes Nilsson confirmed the reports and said that the plant will be launched in the first quarter of 2018 targeting an output of 500 units per year and it will be the third assembly plant in Africa after plants in South Africa and Morocco.
“We see immense opportunities and trust that this part of Africa has the potential to grow substantially, it also has a lot of different resources due to the diverse production of unique products and natural resources,” Nilsson said.
He further explained that the firm will bring to the market top modern trucks that have specifications for the east African region.
Business conditions in the region suggest that you have to have a manufacturing plant for you to look like a serious competitor, hence one of the reasons for taking the initiative.
The plant will be done through a partnership with NECST Motors who are now the exclusive importers of Volvo trucks in the Eastern African region, where the firm eyes 20 percent market share in the next three to five years.
“We have been in East Africa for the last three decades and believe that there is a significant potential for the premium truck business as regional economies grow, infrastructure investments expand and the business environment remains investment friendly,” Nilsson explained.
Volvo Trucks regional office in Nairobi will be responsible for expanding the footprint of the brand in East Africa.
The company which has about 15 plants worldwide has over 20 percent market share in Morocco and 18 percent market share in South Africa.