Volvo Construction Equipment (Volvo CE), a division of the Volvo Group, has unveiled a strategic global investment plan to bolster its crawler excavator production.
The initiative, which aims to meet increasing customer demands, will enhance the company’s operational efficiency and resilience by localising production and reducing dependency on long-distance logistics.
The investment, totalling approximately Skr2.5bn ($260.3m), will be distributed across three primary production locations in South Korea, Sweden, and North America, with the largest allocation earmarked for the Changwon factory in South Korea.
These investments are scheduled to be made over the forthcoming years.
This strategic move is set to significantly increase capacity and flexibility, enabling Volvo CE to effectively meet both current and future customer needs.
By establishing production capacity closer to key markets, the company anticipates shorter delivery times and the ability to offer solutions tailored to regional requirements.
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By GlobalDataThis approach also serves to lower supply chain risks and manage economic and regulatory challenges more adeptly.
Furthermore, the investment is expected to lower carbon emissions by minimising transportation distances and fostering closer collaboration with local suppliers and customers.
Volvo CE head Melker Jernberg said: “We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better.
“This investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers.”
The Changwon site in South Korea will undergo upgrades to secure global volumes and capabilities within Asia.
In Europe, Sweden has been chosen for the production of crawler excavators, with the final decision on location, scope, and timing to be made later in 2025.
Additionally, an excavator assembly line will be installed in the existing factory in Shippensburg, US, to cater to the North American market.
The Changwon factory is a key component in Volvo CE’s global industrial network, holding essential competencies in manufacturing, product development, and purchasing.
