The 440 million agreement, which includes another supplier, aims to deliver 3,000 logistic trucks to both countries
The Estonian Centre for Defence Investments and the Latvian Ministry of Defence have awarded Volvo Defense and another supplier with a €440 million contract to deliver 3,000 logistic trucks to both countries. The signing ceremony was held on 4 October in Tallinn.
The agreement covers a period of seven years but can be extended by three further years. As per the contract, Volvo Defense should start deliveries in 2024.
The Volvo vehicles will have five truck configurations based on Volvo Trucks’ robust 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.
“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.
“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 of the Estonian Centre for Defence Investments.
Meanwhile, Romania has chosen Iveco Defence Vehicles (or IDV, part of Iveco Group) for the delivery of 1,107 military trucks, in four typologies of military logistic platforms, as part of the second tranche of vehicles under a 2019 agreement for the delivery of more than 2,900 High Mobility Trucks.
