Volvo Buses has decided to close down its factory in Saffle by the end of June 2013 and to concentrate its European production in factory in Wroclaw. The Wroclaw factory has four times higher capacity than the Swedish one, company said.

“The demand for new buses in Europe has dropped steadily over the past few years, paralleled by considerable pressure on prices, particularly in the Nordic markets. By concentrating the production of complete buses in one single plant, we can reduce our costs and thus reverse our negative profitability trend,” explains Håkan Karlsson, President Volvo Bus Corporation.

Volvo Buses has located its factories also in North and South America, Asia and Australia.