Volvo CE Invests SEK 2.5 Billion to Enhance Crawler Excavator Production in South Korea, Sweden and North America

Volvo CE Invests SEK 2.5 Billion to Enhance Crawler Excavator Production in South Korea, Sweden and North America

(IN BRIEF) Volvo CE has committed SEK 2.5 billion to expand crawler excavator manufacturing across Asia, Europe, and North America. The largest portion of this investment will enhance the Changwon plant in South Korea to secure global production volumes, with additional capacity to be established in Sweden (site to be confirmed in late 2025) and an assembly line added at the Shippensburg facility in the United States. By producing closer to customers, Volvo CE intends to reduce delivery times, customize solutions to local needs, and decrease carbon emissions through shorter transport distances. This strategic move also strengthens supply chain resilience and drives cost efficiency while promoting collaboration with regional partners. Melker Jernberg, Head of Volvo CE, emphasized that localizing production demonstrates the company’s commitment to quality, innovation, and meeting rising market demands sustainably.

(PRESS RELEASE) GOTHENBURG, 11-Jun-2025 — /EuropaWire/ — Volvo Construction Equipment (Volvo CE) is making a landmark global investment of approximately SEK 2.5 billion to boost crawler excavator production at three strategic sites in South Korea, Sweden, and North America. This initiative responds to surging customer demand, strengthens regional capabilities, and reduces reliance on long-haul logistics, thereby lowering carbon emissions and safeguarding supply chains.

At the heart of the programme is an extensive upgrade to the Changwon factory in South Korea, where the bulk of the funding will secure Asia’s share of global crawler excavator volumes and enhance local competence in manufacturing, product development, and procurement. In Europe, Volvo CE will identify and expand a Swedish facility later in 2025 to serve the continent, while in North America an assembly line will be installed at the existing Shippensburg plant to deliver faster, market-specific solutions.

By decentralizing production closer to key markets, Volvo CE aims to shorten delivery lead times, tailor machines to regional requirements, and foster deeper collaboration with local suppliers and customers. “Our customers need high-quality machines without delay,” said Melker Jernberg, Head of Volvo CE. “Investing in our crawler excavator operations near those customers underlines our dedication to innovation, competence development, and sustainable growth.”

This local-production strategy not only mitigates economic and regulatory risks but also positions Volvo CE to navigate future market uncertainties more effectively, ensuring greater operational agility and resilience.

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.

Media Contact:

Claes Eliasson
Head of Media Relations
+46 76 553 7229
press@volvo.com

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SOURCE: AB Volvo