Volvo Construction Equipment Invests 360 Billion Won in Changwon Plant and Others to Strengthen Global Production Bases

Investment in Sweden and North America Including Changwon
Largest Share to Be Allocated to Changwon

Volvo Construction Equipment Group, a construction machinery manufacturer, is making a large-scale investment in three of its global production bases, including its Changwon plant in Korea.

On June 11, Volvo Construction Equipment announced a strategic investment plan to expand its crawler excavator production capacity in response to increasing customer demand and changing market conditions. The total investment, which will be carried out in phases over the next several years, amounts to 2.5 billion Swedish kronor (approximately 360 billion won), with the largest portion allocated to the Changwon plant.

Volvo Group Korea (Volvo Construction Equipment Korea) Changwon Plant view. Provided by Volvo Group Korea

Regarding this investment, the company explained, "By adding production bases near key markets, we plan to enhance operational efficiency and resilience, and establish a foundation to provide tailored solutions that better meet regional demand more quickly." The company also expects that expanding local production will help reduce carbon emissions by shortening transportation distances, as well as facilitate compliance with regulations.

The Changwon plant, which serves as a core production base within the group with manufacturing, product development, and procurement functions, will be upgraded into an advanced smart factory through this investment. In North America, a new assembly line will be installed at the Shippensburg plant in the United States, while production in Europe will be advanced in Sweden.

Melker Jernberg, President of Volvo Construction Equipment Group, stated, "This investment is a strategy to respond more quickly to demand from locations closer to key markets and customers," adding, "It is a measure that demonstrates our commitment to quality and innovation."