Strategic expansion strengthens capacity, resilience, and sustainability across Asia, Europe, and North America
Volvo Construction Equipment (Volvo CE) has announced a significant global investment of more than USD 260 million (SEK 2.5 billion) to expand crawler excavator production across three key sites. The initiative aims to address rapidly growing customer demand, enhance supply chain resilience through localized manufacturing, and reduce reliance on long-distance logistics.
By adding capacity closer to major markets, Volvo CE will increase operational efficiency, shorten delivery times, and provide tailored solutions for regional customers. The approach also contributes to lower carbon emissions by minimizing transport distances and strengthens collaboration with local suppliers.
“We are excited to expand our facilities to better serve our customers. This investment reflects our strong commitment to quality, innovation, and competence. By bringing production closer to key markets, we can deliver even greater value and strengthen our crawler excavator business worldwide,”
said Melker Jernberg, President of Volvo CE.
Three Sites Driving the Expansion
Changwon, South Korea – The largest share of the investment will go to upgrading the Changwon facility, securing global volumes while enhancing product development, manufacturing, and supply chain capabilities.
Europe (Sweden) – Production capacity for crawler excavators will be added in Sweden. Final decisions on location, scope, and timing are expected in 2025.
Shippensburg, USA – A new crawler excavator assembly line will be installed at the existing plant to serve the North American market.
Strengthening Global Presence
The Changwon site will continue to serve as a cornerstone of Volvo CE’s global industrial network, leveraging its expertise in manufacturing and procurement. Together, the three-site investment will reinforce Volvo CE’s market presence, build long-term resilience, and position the company for sustainable growth and innovation.
Post time: Aug-26-2025
