Recently, SDLG Group has completed the acquisition of 70% equity of Shandong Lingong Engineering Machinery Co., Ltd. (hereinafter referred to as "SDLG") held by Volvo CE through its subsidiary fund. With the completion of this delivery, SDLG Group fully controls the ownership and management rights of Shandong Lingong.
Equity change, the era of cooperation comes to an end
According to business information, SDLG underwent a significant shareholder change on September 1st, Volvo Construction Equipment AB, Volvo (China) Investment Co., Ltd. withdrew and was replaced by a new shareholder - Shanghai Dingjialin Consulting Management Co., Ltd., holding 70% of the shares; At the same time, the company type has been changed from "Limited Liability Company (Sino foreign Cooperation)" to "Other Limited Liability Companies".
The realization of this transaction relies on a newly established fund of SDLG Group. According to the data, Shanghai Dingjialin Consulting Management Co., Ltd. was established on July 3, 2025, with a registered capital of 2.4 billion yuan. 99.9958% of its equity is held by Shanghai Dinggong Private Equity Investment Fund Partnership Enterprise (Limited Partnership), which completed its filing on August 4 this year. Among the partners of the fund, SDLG Group contributed a staggering 95.8604%.
With the change of equity, the senior management team of SDLG has also undergone significant adjustments. 12 directors have collectively withdrawn, and Wen Degang's position has been adjusted from director to general manager and director. At the same time, Zhang Gang has been added as the financial director. This series of changes indicates that SDLG Group is fully taking over the company's management and operation rights.
19 years of cooperation, complementary advantages, win-win situation
On September 27, 2006, SDLG and Volvo Construction Equipment officially signed a strategic cooperation agreement, opening the road of cooperation; In 2007, Volvo Construction Equipment acquired 70% of SDLG's shares for a total transaction value of 327.5 million yuan, becoming its controlling shareholder.
It is worth mentioning that this cooperation adopts a unique dual brand strategy: retaining the influential national brand "SDLG" and introducing Volvo's advanced technology and management system. The cooperation model of dual brand strategy and complementary advantages, where one side trades market for technology and the other side trades technology for market, has created a good synergy effect in product layout between the two parties.
Since 19 years of cooperation, SDLG has made significant progress, with sales revenue and an average annual compound growth rate of over 10% in profits and taxes. At the same time, it has brought benefits and market success to Volvo Construction Equipment.
Formally over, what is the future pattern?
Despite significant achievements in cooperation, changes in the market environment in recent years have prompted both parties to re-examine this partnership.
On June 24, 2025, SDLG Group announced that it will acquire 70% equity of SDLG held by VOLVO CE through a newly established fund. Both parties announced a formal "breakup" and stated that this was a decision made after "friendly negotiations", and both believed that this transaction was "beneficial for the long-term development of both parties in the future".
SDLG Group stated that in the face of complex domestic and international market situations, influenced by factors such as intensified competition in the domestic market, industrial restructuring in the international market, and geopolitical landscape, this transaction is necessary for SDLG to accelerate its international development and promote its global industrial layout.
Melker Jernberg, President of Volvo Construction Equipment, said, "Faced with increasingly fierce market competition, technological transformation needs, and deepening customer cooperation requirements, we need to refocus our strategy. China is still a key market for Volvo, and we will seize opportunities by deepening sustainable solutions in segmented fields, while fully relying on China's well-established industrial system
After reclaiming 70% of its equity, SDLG Group will have greater autonomy and flexibility in decision-making and global market layout, greatly enhancing its agility in responding to global markets. For future development plans, Lingong Group stated that it will comprehensively promote Shandong Lingong to accelerate product innovation and industrial upgrading, deepen global market layout, continuously enhance brand competitiveness and industry influence, and make unremitting efforts to achieve high-quality development and global strategic goals.
Volvo Construction Equipment, which sells its equity, will receive dozens of times the return on investment, allowing it to better focus on its core high-end market: focusing on providing Volvo brand high-end 名媛直播 and services to specific customer groups in the Chinese market; Build the Chinese business system into a production center serving both domestic and export markets; Continuously promote the integration of Jinan Technology Center (JTC) into the global technology system, and maximize the use of Chinese resources to develop 名媛直播 for the global market.
At present, Chinese construction machinery has entered the stage of "technology output", and Chinese brands have shifted from "followers" to "competitors". Leading companies such as XCMG, Sany, and Zoomlion have invested and built factories overseas, accelerating the process of Chinese brand localization. In the future, it is expected to reshape the global competition pattern of construction machinery through independent layout and ecological construction.
The end is for a new beginning, and the independent development path of SDLG is worth looking forward to!
