Finance
Volvo Group to Close Loss-Making Unit in Scotland Citing Supply Chain Woes and Trade Barriers
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Volvo to Shutter Rokbak Scotland Unit Amid Supply Chain, Trade Challenges
Volvo Group Announces Closure of Rokbak Haulers Business
STOCKHOLM, March 17 (Reuters) - Volvo Group said it will shut down its loss-making Rokbak haulers business within its construction equipment (CE) unit, citing persistent supply chain challenges and trade barriers impacting exports from Britain.
Volvo Group, one of the world’s largest makers of trucks, buses and construction equipment, said the closure of Scotland‑based Rokbak will reduce operating income in the CE segment by about 0.7 billion Swedish crowns ($75.3 million) in the first quarter.
Key Factors Behind the Closure
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Inflation and Supply Chain Costs
Inflation, rising supply‑chain costs and increased tariffs have made it harder for manufacturers to sustain less‑profitable product lines, prompting companies such as Volvo to close or consolidate operations to cut costs.
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Financial Performance of Rokbak
Rokbak’s 2025 revenue was around 1 billion crowns, and the unit had been loss‑making for an extended period, with performance deteriorating further after January 2025, a Volvo spokesperson told Reuters.
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Export and Market Challenges
"With this being in Scotland and hence outside of the EU, there are a lot of extra work to get those machines out and about right now, so a challenging environment for them to export," the spokesperson said, adding that Scotland and England were not large enough markets to sustain the operation.
Timeline and Future Plans
Production and Closure Schedule
Production of Rokbak articulated haulers is expected to conclude in the second half of 2026, with the full closure of the unit anticipated by the third quarter of that year.
Motherwell Facility’s Continued Role
Volvo said the Motherwell facility near Glasgow will continue as a hub for designing and manufacturing its rigid haulers and for developing future product lines.
Financial Impact
($1 = 9.3095 Swedish crowns)
Reporting Credits
(Reporting by Marie Mannes and Essi Lehto, editing by Stine Jacobsen)
References
Frequently Asked Questions about Volvo Group to close loss-making unit in Scotland citing supply chain woes and trade barriers
1Why is Volvo Group closing its Rokbak business in Scotland?
Volvo Group is closing Rokbak due to persistent supply chain challenges and trade barriers affecting exports from Britain, making the unit unprofitable.
2How much will the closure impact Volvo Group's operating income?
The closure will reduce operating income in Volvo’s construction equipment segment by about 0.7 billion Swedish crowns ($75.3 million) in the first quarter.
3When will the Rokbak unit in Scotland fully close?
Production will end in the second half of 2026, with the full closure of the unit expected by the third quarter of that year.
4What will happen to Volvo's Motherwell facility after the Rokbak closure?
The Motherwell facility will continue as a hub for designing and manufacturing rigid haulers and developing future product lines.
5What factors led to the worsening situation for Rokbak after January 2025?
Performance deteriorated due to inflation, rising supply chain costs, increased tariffs, and limited market size in Scotland and England.
