Volvo Construction Equipment (Volvo CE) has announced that it will phase out its Rokbak articulated hauler division due to the unsustainable profitability and long-term strategy shift.

The company stated that increased operational and supply chain costs, together with global trade challenges such as US tariffs, have significantly impacted financial performance, rendering continued operation unsustainable.

Rokbak, previously known as Terex Trucks, has supplied customers globally with articulated haulers for over 40 years. The business recorded revenues of Skr1.0bn ($107m) but operated at a loss in 2025.

The company plans to halt production of Rokbak-branded vehicles in the second half of 2026.

Volvo CE president Melker Jernberg said: "We are deeply grateful to our loyal Rokbak customers, dealers, dedicated employees, and supportive partners who have been part of this journey. Our priority is to honour our commitments and deliver ongoing comprehensive support to Rokbak customers and partners."

During the transition, Volvo CE stated it would continue supporting existing Rokbak customers and partners, promising dedicated assistance throughout the phase-out process and beyond.

The company also confirmed that it will engage with unions, government representatives, and regulatory authorities to manage the implications for employees affected by the decision.

Looking ahead, Volvo CE will shift its resources towards the development and launch of alternative hauling solutions within its product portfolio.

The Motherwell facility in Scotland will remain operational, focusing on the design and manufacture of Volvo rigid haulers and furthering development across future product lines.

The planned closure is subject to a collective consultation process with employees and stakeholders and is expected to conclude by the third quarter of 2026.

Volvo CE anticipates the shutdown will reduce operating income by approximately Skr0.7bn ($75m) in the Construction Equipment segment for the first quarter of 2026, with about Skr0.4bn ($43m) attributed to non-cash items, primarily related to goodwill impairment.

"Volvo CE to close Rokbak business amid unsustainable operation " was originally created and published by World Construction Network, a GlobalData owned brand.

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