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Volvo CE inaugurate new facilities to accelerate transformation journey

Investment in the Volvo CE facilities is part of the company’s strategy to drive the transformation towards more sustainable solutions
Investment in the Volvo CE facilities is part of the company’s strategy to drive the transformation towards more sustainable solutions

New facilities inaugurated in South Korea and Sweden following SEK440 million investment

VOLVO Construction Equipment have inaugurated new facilities at their plants in Changwon, South Korea, and Braås, Sweden, to support their strategy to offer more sustainable solutions to their customers and meet their ambitious sustainability commitments. An investment totalling SEK440 million (US$40.5 million) has been used to develop the new facilities.

Kamel Sid, head of operations at Volvo CE, said: ‘The investment in our facilities is an important part of our strategy to drive the transformation towards more sustainable solutions and to help us meet our Science Based Targets commitments. We have an ambition to be fossil-free and for 35% of our machine sales to be electric by 2030, so investing in our facilities is another important step on our electrification roadmap.

Inauguration of the new battery facility at Volvo CE Changwon, south Korea
Inauguration of the new battery facility at Volvo CE Changwon, south Korea

In Changwon, an investment of SEK80 million (US$7.8 million) has been used to build a new 2,500m2 battery pack production facility for the benefit of the Volvo Group, while at the Braås plant in Sweden SEK360 million ($32.7 million) has been used to expand production facilities to accelerate the phased shift to electromobility for articulated haulers.

Andrew Knight, head of excavator industrial strategy and managing director of Volvo Group Korea, said: ‘Our new battery facility in Changwon will produce a range of battery pack solutions for the Volvo Group. In April 2022, we established a mass production line for electric excavators, and with the completion of the new battery pack production facility, we can now produce them in house, from batteries to finished products, saving time and logistics costs.’

The new battery pack will be used in the 23-tonne Volvo EC230 Electric excavator, which begins mass production in Changwon from August 2024. Changwon is the largest excavator manufacturing site in Volvo CE, producing around 55% of the company’s total excavator volumes, and with this investment it will become a core competence centre for electric excavators.

Inauguration of Volvo CE’s Braås facility in Sweden
Inauguration of Volvo CE’s Braås facility in Sweden

In Braås, the investment has been used to expand the manufacturing facilities at the plant, which specializes in the production of articulated haulers. Importantly, it will enable the factory to deliver a larger range of articulated haulers with different types of powertrain to reflect the company’s shift toward offering solutions that run on more sustainable power sources. The plant has always been at the forefront of sustainability; it was here that the first articulated hauler in the world was built using fossil-free steel.

Joakim Karlsson, head of global quality, safety and sustainability – operations at Volvo CE, said: ‘Our employees at Braås have been instrumental in this project to develop our facilities. As part of the process, we have evaluated our ways of working and introduced improvements that deliver health, safety, and ergonomic benefits for our employees, as well as helping us increase productivity. With the new building, we’ve also added height to more easily accommodate production of our 60-tonne A60H, the largest articulated hauler in the world.’

The new building will be used for pre-delivery inspection (PDI) and final assembly, with work commencing from 3 June.

Volvo CE are also committed to investing in their facilities to reduce their environmental impact and have a target to cut emissions across their own operations, facilities, and manufacturing processes by half by 2030. The Braås site was the first in the construction industry to achieve a carbon-neutral operation powered entirely by renewable energy, whilst in Changwon the installation of solar panels will be completed and providing renewable energy by late August this year.

 

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