JCB and Volvo Construction Equipment have entered into an agreement which means they will co-operate on the engineering and manufacturing of skid steer loader and compact tracked loader products. Both companies will continue to distribute under their own brand names and through their respective global dealer networks.

It is expected that the first mono-boom Volvo machines will be in production at JCB’s Savannah, Georgia, facility by the end of 2010. After that, Volvo Construction Equipment will continue to move the production of skid steer loader models from its Pederneiras facility in Brazil to North America.

John Patterson, deputy chairman of JCB, said: “This agreement will allow us to combine forces in this key product area enabling both brands to compete more effectively.”

Olof Persson, Volvo Construction Equipment President, added: “Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality they expect.”