Volvo Construction Equipment (Volvo CE) is making a global investment in crawler excavator production at three key Volvo CE locations. The firm says that this will meet growing customer demands, mitigate supply chain risks through localised production and reduce reliance on long-distance logistics.
The investment covers three main production sites worldwide, in South Korea, Sweden and North America. The total investment is approximately 2,500 MSEK with the largest share dedicated to the Changwon factory in South Korea.
By adding production capacity near key markets, Volvo CE will improve operational efficiency and resilience, ensuring shorter delivery times and tailored solutions for regional needs. This approach mitigates supply chain risks through localised production, reducing reliance on long-distance logistics, and managing economic and regulatory challenges. Additionally, it aims to lower carbon emissions by minimising transportation distances. By fostering collaboration with local suppliers and customers, Volvo CE is positioned for sustained growth and innovation, reinforcing its market presence, utilising existing and new competences and navigating complexities more effectively.
“We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better,” said 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 plan includes upgrading the Changwon site in South Korea to secure global volumes and capabilities in Asia. For the production of crawler excavators in Europe, Sweden has been selected, and the final decision regarding the location, scope, and timing will be made later in 2025. Additionally, an excavator assembly line will be installed in the existing factory in Shippensburg, USA to serve the North American market. This strategic approach aims to strengthen Volvo CE’s presence and operational efficiency across key regions and markets.
The Changwon site remains an important factory in the company’s global industrial network holding key competences for manufacturing, product development, and purchasing. The investment in Changwon is aimed at securing global volumes and capabilities while at the same time leveraging supply chain capabilities to enhance efficiency, reduce costs, and improve responsiveness to market demands.
