Volvo CE invests $260M to expand excavator production

Volvo Construction Equipment has invested roughly 2.5 billion Swedish kronor ($260 million) to expand global production of crawler excavators at sites in South Korea, Sweden and the United States.

The investment was made to meet growing customer demand, improve supply chain resilience through localized production and reduce reliance on long-distance logistics, according to a Volvo release today. Volvo CE said the expansion will also support its sustainability goals by cutting transportation-related emissions.

The largest share of the funding will go toward upgrading the company’s facility in Changwon, South Korea — a major hub for manufacturing, product development and purchasing. That investment is intended to secure global volumes and enhance the company’s reach across Asia.

Company plants in Sweden and in Shippensburg, Pa., also will be upgraded. In North America, Volvo CE will add an excavator assembly line at the Pennsylvania facility to better serve the regional market.

The investment will boost production capacity and flexibility, allowing for shorter delivery times and improved regional responsiveness, according to the release.

Editor’s note: All amounts have been converted to U.S. dollars.