Volvo CE invests 2,500 MSEK to expand global crawler excavator production

Volvo CE announces a strategic global investment in crawler excavator production at three important Volvo CE facilities to satisfy rising customer demand, decrease supply chain risks through localised production, and reduce dependency on long-distance logistics.

The investment seeks to improve Volvo CE’s position and global crawler excavator footprint in order to fulfil increasing client demand and prepare for long-term solutions. The investment covers three major production facilities in South Korea, Sweden, and North America. The overall investment is roughly 2,500 MSEK, with the majority going to the Changwon facility in South Korea.

The investment aims to strengthen and expand Volvo CE’s global crawler excavator footprint
In a dynamically changing industry, this strategic initiative will significantly increase capacity and flexibility, enabling Volvo CE to effectively fulfil current and future client expectations. By increasing production capacity near major markets, Volvo CE will improve operational efficiency and resilience, resulting in shorter delivery times and tailored solutions to regional needs. This method reduces supply chain risks by localising production, lowering reliance on long-distance logistics, and addressing economic and regulatory issues. Furthermore, it tries to reduce carbon emissions by shortening transit distances. Volvo CE is well-positioned for long-term growth and innovation by promoting collaboration with local suppliers and customers, strengthening its market presence, leveraging current and new competencies, and managing challenges more effectively.

“We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better,” says Melker Jernberg, Head of Volvo CE. “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 expansion will include three existing Volvo CE sites worldwide
The proposal calls for revamping the Changwon plant in South Korea to secure global volumes and capabilities in Asia. Sweden has been chosen to manufacture crawler excavators in Europe, with the final decision on site, scope, and timing coming later in 2025. In addition, an excavator assembly line will be established at the existing facility in Shippensburg, Pennsylvania, to serve the North American market. This strategic approach seeks to strengthen Volvo CE’s footprint and operating efficiency in important regions and markets.

The Changwon factory remains a key site in the global industrial network
The Changwon location remains an important factory in the company’s global industrial network, with essential competencies in production, product development, and purchasing. The Changwon investment aims to secure worldwide volumes and capabilities while also using supply chain skills to improve efficiency, lower costs, and respond more quickly to market demand.

The three sites have a total investment of 2,500 MSEK, with the Changwon facility receiving the greatest part. The investments will be made in the following years.

For more information, visit: https://www.volvoce.com/global/en/