Restricted supply and burgeoning demand for steel, especially in China, has led to the cost of iron ore rising by over 70% on the worldwide markets. This has resulted in a sharp increase in the price of steel and consequently in the production costs of manufacturers of construction equipment. To offset some of the impact of these rises, Volvo Construction Equipment will increase the prices of its machines, attachments and parts by five percent.

"Manufacturers of heavy construction equipment are being particularly hard hit by the current record prices of commodities, such as steel, oil, iron ore and rubber," says Mr. Scott Hall, Executive Vice President of Volvo Construction Equipment. "With no sign of commodity prices cooling in the foreseeable future it has become unavoidable that these costs be offset in the form of a price increase."

The price increase will be made across Volvo Construction Equipment's entire product range and implemented globally.