Volvo CE invests in battery pack production at its excavator plant

Volvo Group will invest SEK 80 million (about $7.8 million) to build a new production facility and equipment at the Changwon factory in South Korea, which is Volvo CE’s largest excavator production site, producing around 55 percent of overall excavator volumes.

The new facility at the Changwon factory will manufacture a variety of common electric storage solutions (battery packs) for Volvo Group and will serve as a key competence centre for electric excavators. Volvo Group will be able to deliver more sustainable solutions to its APAC markets in a more flexible, cost-effective, and agile manner, including supply chain, production, and logistics.

“As the largest factory in Volvo CE and the primary location for excavator development and production, Changwon is at the vanguard of our transformation to a sustainable future,” says Andy Knight, Head of Operations Excavator and Managing Director of Volvo Group Korea. “This investment is a significant step forward in our electrification strategy and complements our recent investments in electric excavator manufacturing plants. Changwon is strategically placed near battery module supply partners and other major suppliers in South Korea to suit clients’ future demands. We also have highly skilled and motivated personnel that is dedicated to fulfilling our future environmental goals.”

The new production facility will be established inside Changwon’s current component workshop, without interfering with the current operation. When finished, the facility will be around 2,500 square metres in size, including assembly and logistical sections. Construction will begin in April 2023, with battery pack production beginning in June 2024.

For more details visit: https://www.volvoce.com/