The German truck manufacturer Volvo Group is set to open its third assembly plant in Africa in the port city of Mombasa in Kenya. Its other assembly plants in Africa are in South Africa and Morocco, where the company has over 20% and 18% market share respectively. Setting up the Mombasa plant will cost Volvo about Ksh. 2.5 billion ($24,201,375) and it is aimed at strategically targeting the growing East African regional market.
The Volvo Trucks President, Claes Nilsson, said the plant should be up and running in the Q1 of 2018 with an output of 500 units per year. Nilsson further added that Volvo would be bringing the top of the class modern trucks with specifications tailor-made for the East African region.
“We see great opportunities and believe that this part of Africa that has potential to grow substantially; it has a lot of different resources due to the diverse production of different products and natural resources,” said Nilsson while addressing the Capital FM Business.
“Business conditions here is that you have to have a manufacturing plant unless you do that, you are not a serious player …read more