Volvo Construction Equipment (Volvo CE) has announced a strategic global expansion across three of its key manufacturing sites, aimed at enhancing production capacity, improving regional responsiveness, and meeting the growing global demand for crawler excavators.
The expansion includes a major upgrade to the Changwon facility in South Korea—Volvo CE’s central hub for excavator production and engineering in Asia. This investment will secure global volumes and leverage local supply chain capabilities to boost efficiency and reduce operational costs. The Changwon site will receive the largest share of the investment, underlining its role as a cornerstone in the company’s global industrial network.
In Europe, Volvo CE plans to establish a new crawler excavator production line in Sweden, with a final decision on location and timeline expected in 2025. Meanwhile, in North America, the company will introduce an excavator assembly line within its existing factory in Shippensburg, Pennsylvania, enabling faster deliveries and more tailored solutions for the regional market.
Melker Jernberg, Head of Volvo CE, “In today’s dynamic market, we see the importance of staying close to our customers. This expansion strengthens our commitment to quality, innovation, and competence, while enhancing our ability to serve key regions efficiently.”
By localizing production closer to demand centres, Volvo CE aims to shorten delivery times, lower carbon emissions from transportation, and better manage regulatory and economic complexities. The move also fosters collaboration with local suppliers and customers, reinforcing Volvo CE’s long-term strategy for sustainable growth, innovation, and regional adaptability.
The phased investments over the coming years reflect Volvo CE’s commitment to not only expanding its production footprint but also securing future competitiveness in an evolving global landscape.
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