Husqvarna Group (Stockholm) will invest in a new production facility for making chainsaw chains in Huskvarna, Sweden, where it already manufactures professional chainsaws, brush cutters, and trimmers.
The group will also invest in expanded capacity for manufacturing of cylinders for two-stroke engines for chainsaws in its existing facilities in Nashville, TN, and in Huskvarna, Sweden.
"Saw chains are critical for chainsaw performance. They are also one of the largest aftermarket product categories," noted Hans Linnarson, president and CEO of Husqvarna Group. "Through the investment, we will leverage our technical expertise to develop, design, and manufacture chains, thus optimizing the full performance of the chainsaw. The investment will also enable us to grow our offering in the replacement part market."
Linnarson said several sites globally were evaluated for the new chain plant. "Critical needs were access to technical know-how, skilled labor, and a strong infrastructure," he said.
The new facility in Huskvarna will employ more than 100 people by 2015.
"The facilities in Nashville and Huskvarna manufacture handheld products, such as trimmers and chainsaws. By further insourcing cylinder manufacturing, we obtain better control of a core component for these products," said Linnarson.
The investments will amount to around SEK 1 billion (approx. USD $160 million) during 2013 - 2015.
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