Volvo Construction Equipment (Volvo CE) said it is making a strategic investment in crawler excavator production at three key sites in South Korea, the United States and Sweden to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics.
The total investment is US$261 million with the largest share dedicated to upgrading the Changwon factory in South Korea. In Shippensburg, Pa. (USA), Volvo CE will not only add crawler excavator production but also expand wheel loader production at the site to include large wheel loaders. For Sweden, a final decision regarding the location, scope and timing will be made later in 2025.
“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.”
By expanding production capabilities in key markets, Volvo CE will reduce dependency on any single site and become less reliant on long-distance logistics. Supply chain risks will also be mitigated by expanding domestic supplier bases, allowing the OEM to more nimbly manage any economic or regulatory challenges.
Source: Vovlo CE