Volvo Construction Equipment (Volvo CE) has confirmed plans to expand and modernise its production facility in Changwon, South Gyeongsang Province, South Korea. The strategic move forms part of a broader global investment initiative designed to enhance the company’s crawler excavator production capacity and better serve growing international demand.
The Swedish heavy machinery manufacturer will invest a total of USD 264 million across three key production hubs located in South Korea, Sweden and North America. While Volvo CE has not disclosed a detailed breakdown of the investment per location, it confirmed that the Changwon facility will receive the largest portion of the capital allocation.
The investment at the Changwon site will be deployed over the coming years and will focus on increasing manufacturing capacity, improving supply chain resilience and enhancing the plant’s overall responsiveness to market demands. The upgraded facility is expected to play a central role in supporting global volumes and expanding Volvo CE’s operational capabilities in the Asia-Pacific region.
Volvo CE highlighted Changwon’s continued importance within its international production network, citing the plant’s strategic competencies in manufacturing, product development and procurement. The facility, which exports more than 80 percent of its total output, currently holds the largest excavator production capacity across the entire Volvo Group.
The broader investment plan will also include the establishment of a new excavator assembly line in Shippensburg, Pennsylvania, aimed at meeting the specific needs of the North American market. A decision regarding the Swedish component of the expansion, including the precise location, scope and timing, is expected later this year.
By positioning production closer to its major markets, Volvo CE aims to bolster operational efficiency, reduce delivery lead times and offer more tailored solutions. This global expansion is also aligned with the company’s commitment to sustainability, with reduced transportation distances contributing to lower carbon emissions.
Melker Jernberg, President of Volvo Construction Equipment, stated, “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 Korea Herald
