Agreement sees Estonia and Latvia to receive up to 3000 logistics trucks
Volvo Defense, a business operation within Volvo Trucks, has announced that it has entered a framework agreement with the Estonian Centre for Defence Investments and the Ministry of Defence of the Republic of Latvia for the delivery of logistic trucks.
Volvo was chosen as one out of two suppliers that combined will deliver up to 3,000 vehicles over a period of seven years.
Starting in 2024, Volvo Defense aims to begin deliveries of logistic trucks to Estonia and Latvia as part of a framework agreement where Volvo is one of two chosen suppliers. The overall requirement of the two countries is up to 3,000 vehicles, representing a total value of approximately 440 million Euros ($AU730,279,825). Volvo says the agreement covers seven years which can be extended by three years when necessary.
The contract was signed at a ceremony in Tallinn, Estonia on October 4, attended by representatives from the Estonian and Swedish governments.
The Volvo vehicles will consist of five truck configurations based on Volvo Trucks’ FMX model. The agreement also includes a comprehensive maintenance and spare parts program. The vehicles will be produced in Volvo Trucks’ Tuve assembly plant in Gothenburg, Sweden.
“This is a significant deal for Volvo Defense and a proof point of the reliability of our products and of Volvo as a long-term business partner,” says Andreas Svenungsson, president of Volvo Defense. “I am looking forward to working with our Estonian and Latvian customers in tailoring the best products and services for them during the years to come.”
The new agreement builds on a long relationship between Volvo Defense and the Estonian armed forces where the first deliveries took place in 2014. Estonia and Latvia are well established markets for Volvo Trucks with a stable infrastructure for sales and aftermarket services.
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“This contract holds great significance for Estonia, as it offers us a unique opportunity to acquire custom-built vehicles tailored to the specific needs of our defence forces. We are delighted to have entered into a contract with Volvo as their vehicles have consistently demonstrated their suitability for the Estonian climate and environment over the years of use,” said Erko Sepri, Strategic Category manager (vehicles, machinery and logistics) of Estonian Centre for Defence Investments.
Volvo Defense builds a range of bespoke logistic trucks, engineering machines, marine and industrial applications, and engines to global defence and civil protection customers.