Swedish trucks and engineering group Volvo said on Wednesday its construction equipment division had agreed to buy 70 percent of Chinese construction machinery manufacturer Shandong Lingong.

"This is another important step in Volvo's growth strategy for China and Asia," Volvo Chief Executive Leif Johansson said in a statement.

The Swedish company said Lingong was based in Linyi in Shandong Province and had a turnover of about US$250 million.

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