Volvo Construction Equipment announced a strategic investment of approximately 2.5 billion SEK (about $235 million) to expand crawler excavator production at three key sites across South Korea, Sweden and North America.
The move is aimed at strengthening Volvo CE’s global footprint, improving supply chain resilience and reducing reliance on long-distance logistics. The company said the investment will boost production capacity, shorten delivery times and better tailor products to regional market needs.
“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.”
The largest portion of the investment will go to upgrading the Changwon factory in South Korea, which plays a central role in Volvo CE’s industrial network. The site is critical for global manufacturing, product development and purchasing capabilities. The expansion will help secure global volumes and increase responsiveness to market demand while enhancing efficiency through localized supply chains.
In Europe, Sweden has been selected as the location for crawler excavator production, with final decisions on timing and scope expected later this year. In North America, an excavator assembly line will be added to Volvo CE’s existing factory in Shippensburg, Pennsylvania.
The investment reflects Volvo CE’s strategy to enhance flexibility, reduce carbon emissions from transport, and increase collaboration with local suppliers and customers in each region. The company plans to phase in the upgrades over the coming years.
