Volvo Construction Equipment (Volvo CE) has announced a strategic, global investment in the production of crawler excavators across three key Volvo CE facilities. This move aims to meet growing customer demand, reduce supply chain risks through localized production, and lessen reliance on long-distance transportation.
The investment is intended to strengthen Volvo CE’s position and expand its presence in the global crawler excavator segment, responding to increasing demand and preparing for sustainable solutions. It involves three main global production sites: in South Korea, Sweden, and North America. The total investment amounts to approximately SEK 2,500 million (MSEK), with the largest portion allocated to the Changwon plant in South Korea.
Investment Strengthens and Expands Volvo CE’s Global Excavator Business
In a rapidly changing environment, this strategic initiative will significantly enhance Volvo CE’s capacity and flexibility, enabling it to better meet current and future customer needs. By boosting production capacity near key markets, the company will improve operational efficiency and resilience, ensuring faster delivery times and solutions tailored to regional demands.
This approach mitigates supply chain risks through localized manufacturing, reducing dependency on long-distance transportation and enabling better handling of economic and regulatory challenges. Moreover, it aims to reduce carbon emissions by minimizing transport distances. By strengthening collaboration with local suppliers and customers, Volvo CE is well-positioned for sustainable growth and innovation, enhancing its market presence and leveraging existing and new capabilities to address future challenges.
Melker Jernberg, President of Volvo CE, stated:
“We understand the need to respond to growing demand, and we are excited to expand our facilities to better serve our customers. This investment highlights our commitment to quality, innovation, and expertise, allowing us to deliver even greater value. This expansion reflects our efforts to meet demand by investing in crawler excavator production close to our key markets and customers.”
Expansion Involves Three Existing Volvo CE Facilities Globally
The plan includes upgrading the facility in Changwon, South Korea, to secure global production capacity and meet demand in Asia. For excavator production in Europe, Sweden has been selected, with the final decision on the exact location, scope, and timeline to be made later in 2025. Additionally, a new excavator assembly line will be established at the existing Shippensburg facility in the United States to serve the North American market.
Changwon Plant Remains a Key Hub in the Global Industrial Network
The Changwon facility continues to play a vital role in the company’s global industrial network, serving as a strategic pillar for production, new product development, and supply chain management. The investment there aims to ensure global manufacturing capacity and optimize the supply chain for greater efficiency, reduced costs, and improved responsiveness to market demands.
