Volvo CE North America Wins Multimillion Dollar Contracts for Iron in Iraq

Tue October 05, 2004 - National Edition

Volvo Construction Equipment North America has been awarded contracts totaling approximately $30 million by the United States government to build and deliver more than 200 units of construction equipment to the Iraqi government to be used in the reconstruction of that country.

The contracts, awarded on behalf of the Iraqi government by the United States’ Department of State, are funded by a $21 billion reconstruction allocation from the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004, passed by the United States Congress in 2003. The Tank and Armored Command (TACOM), a purchasing agency of the U. S Army, managed the contract initiatives and implementation.

The contracts, which are to be completed in two years, call for the delivery to Iraq of 120 Volvo L120E wheel loaders, 28 Volvo EW180B wheeled excavators, 50 Volvo G710B motorgraders and 10 Volvo BL70 backhoe loaders. Manufacture and assembly of the equipment will be at Volvo CE plants in Sweden, Canada, Germany, Poland and the United States. Delivery of the equipment will begin in November 2004 with an initial order of 60 wheel loaders, three wheeled excavators, 22 motor graders, and two backhoe loaders.

The construction equipment will be shipped to the Iraq cities of Baghdad and Basrah and is owned by and under the control of Iraqi ministries.

The winning of the contract was the result of a group effort by Volvo Construction Equipment companies in North America, Sweden, Germany and Canada. James Peesker, Volvo Construction Equipment North America director of governmental sales, who is based in Asheville, NC, managed the development and bidding processes of the contracts with assistance from global Volvo CE management groups. Geoff Merrill, vice president, and LeeAnn Petersen, manager, governmental relations and public affairs, Volvo Group North America, Washington, D.C., worked closely with the government agencies involved in the deliberation of the contracts. Goran Blomquist, Iraq Task Force Coordinator, Volvo CE, Sweden, will manage the delivery of the equipment to Iraq and provide translations of all support materials.

In making the announcement of the contract award, Peesker said, “The primary reasons for the selection of Volvo products included its building of equipment to high performance specifications and standards and equipment with the capabilities of operating efficiently in extremely tough physical working conditions. Also, we are able to meet very strict and critical delivery time requirements.”

Volvo CE has been operating in Iraq for several years and has developed a working relationship with local and regional Iraq leaders. The company has been able to move shipments of equipment with local approval and assistance to final destinations within the country. Volvo CE also has equipment support capabilities in place with a proven track record of working in Iraq.

Only companies within the World Trade Organization or in the coalition countries engaged in Iraq were eligible to bid for these contracts. Volvo CE faced stiff competition for the contracts from major international equipment manufacturers.