Volvo Group to close loss-making unit in Scotland citing supply chain woes and trade barriers

Volvo AB

17/03/2026 13:03

STOCKHOLM, March 17 (Reuters) - Volvo Group VOLVb.ST 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.

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.

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.

"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.

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.

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.

($1 = 9.3095 Swedish crowns)

(Reporting by Marie Mannes and Essi Lehto, editing by Stine Jacobsen)

((essi.lehto@thomsonreuters.com; +358 50 541 2375))