Volvo CE invest in global crawler excavator production
Strategic investment aims to strengthen and expand Volvo CE’s global crawler excavator footprint
VOLVO Construction Equipment (Volvo CE) have announced a strategic global investment in crawler excavator production at three of the company’s key locations to meet growing customer demands, mitigate supply chain risks through localized production, and reduce reliance on long-distance logistics.
In a rapidly evolving market, Volvo CE say this strategic initiative will significantly enhance capacity and flexibility, allowing them to meet current and future customer demands effectively. By adding production capacity near key markets, the company will improve operational efficiency and resilience, ensuring shorter delivery times and tailored solutions for regional needs.
According to Volvo CE, this approach mitigates supply chain risks through localized production, reducing reliance on long-distance logistics, and managing economic and regulatory challenges. Additionally, it aims to lower carbon emissions by minimizing transportation distances.
By fostering collaboration with local suppliers and customers, Volvo CE say they are positioned for sustained growth and innovation, reinforcing their market presence, utilizing 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 company’s 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, with the final decision regarding the location, scope, and timing to be made later in 2025. Additionally, an excavator assembly line will be installed in Volvo CE’s existing US factory in Shippensburg to serve the North American market. This strategic approach aims to strengthen the company’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.
The total investment in the three sites is MSEK2,500, with the largest share dedicated to the Changwon factory. The investments will be made over the coming years.
