Volvo Defense enters 7-year framework agreement for deliveries of logistics trucks to Estonia and Latvia.

Volvo Defense, a division operating under Volvo Trucks, has inked a framework agreement with the Estonian Centre for Defence Investments and the Ministry of Defence of the Republic of Latvia. This agreement pertains to the supply of logistical trucks, and Volvo has been selected as one of the two suppliers responsible for delivering up to 3,000 vehicles over a span of 7 years. The contract was signed during a ceremony held in Tallinn, Estonia on Wednesday, 4 October, attended by representatives from the Estonian and Swedish governments.
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Volvo MFX container carrier in military version (Picture source: Volvo Trucks/Pro Lift OÜ)

Commencing in 2024, Volvo Defense intends to initiate deliveries of logistical trucks to both Estonia and Latvia under this framework agreement, where Volvo holds the distinction of being one of the two chosen suppliers. The combined vehicle requirement of these two countries amounts to up to 3,000 units, with an approximate total value of 440 million Euros. The terms of the agreement span 7 years but can be extended for an additional 3 years if deemed necessary.

The Volvo vehicles to be provided will encompass five truck configurations based on Volvo Trucks' reliable FMX model, renowned for its dependability and efficiency. Additionally, the agreement encompasses an extensive maintenance and spare parts program. The production of these vehicles will take place at Volvo Trucks' Tuve assembly plant in Gothenburg.

Andreas Svenungsson, President of Volvo Defense, said: "This is a significant deal for Volvo Defense and a testament to the reliability of our products and our status as a long-term business partner. I eagerly anticipate collaborating with our Estonian and Latvian clients to tailor the finest products and services for them in the years ahead."

This new agreement further solidifies the longstanding relationship between Volvo Defense and the Estonian armed forces, with the initial deliveries dating back to 2014. Both Estonia and Latvia are well-established markets for Volvo Trucks, boasting stable infrastructure for sales and post-sales services.

Erko Sepri, Strategic Category Manager (Vehicles, Machinery, and Logistics) at the Estonian Centre for Defence Investments, commented, said: "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."

Defense News October 2023