JCB and Volvo Construction Equipment have entered into a framework agreement under which they will cooperate on the engineering and manufacturing of skid-steer loader and compact tracked loader products for distribution under their respective brands and through their respective global dealer networks.

It is envisaged that the first monoboom Volvo-branded machines will be in production at JCB’s Savannah, Ga., facility by year-end 2010. Volvo Construction Equipment will then transition skid-steer loader models over time from its Pederneiras facility in Brazil.

John Patterson, deputy chairman of JCB, said, “This agreement will allow us to combine forces in this key product area, enabling both brands to compete more effectively.”

Olof Persson, Volvo Construction Equipment president, said, “Volvo customers will benefit from a wider range of models that maintain the high level of product safety and functionality that they expect.”