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‘Important step’: Volvo CE’s new facilities in South Korea, Sweden

Volvo Construction Equipment (Volvo CE) has unveiled new facilities in South Korea and Sweden as part of its commitment to sustainable equipment.

The company has invested SEK 440 million ($40.5 million) to develop the facilities in Changwon (South Korea) and Braås (Sweden).  

Changwon is the home of Volvo CE’s new battery production facility ($7.8 million), while the Braås facilities (SEK 360 million ($32.7 million)have been expanded to accommodate electromobility production for articulated haulers.  

“The investment in our facilities is an important part of our strategy to drive the transformation towards more sustainable solutions and to help us meet our Science Based Target commitments,” Volvo CE head of operations Kamel Sid said. 

“We have an ambition to be fossil-free and for 35 per cent of our machine sales to be electric by 2030, so investing in our facilities is another important step on our electrification roadmap.” 

Inauguration of the new battery facility at Volvo CE Changwon. Image: Volvo CE

The new battery facilities in Changwon are operational. The new battery pack will be used in the 23-ton Volvo EC230 Electric excavator which begins mass production in Changwon from August 2024. Changwon is the largest excavator manufacturing site in Volvo CE, producing around 55 per cent of its total excavator volumes, and with this investment, it will become a core competence centre for electric excavators. 

“In April 2022, we established a mass production line for electric excavators and with the completion of the new battery pack production facility, we can now produce them in-house, from batteries to finished products, saving time and logistics costs,” Andrew Knight, Head of Excavator Industrial Strategy and Managing Director of Volvo Group Korea, said. 

“The new 2,500 sq. meter facility which has been built within the plant includes assembly and logistics areas. Our skilled and experienced workforce is ready to help us take this next step on our transformation journey.” 

Volvo CE has unveiled two new facilities. Image: Volvo CE

The Braås factory will deliver a larger range of articulated haulers with different types of powertrain to reflect the company’s shift toward offering solutions that run on more sustainable power sources. The new building will be used for Pre-Delivery Inspection (PDI) and final assembly, with work commencing here from June 3. 

“Our employees at Braås have been instrumental in this project to develop our facilities. As part of the process, we have evaluated our ways of working and introduced improvements that deliver health and safety and ergonomic benefits for our employees, as well as helping us increase productivity,” Volvo CE Head of Global Quality, Safety and Sustainability, Operations Joakim Karlsson said. 

“With the new building, we’ve also added height to more easily accommodate production of our 60-ton A60H, the largest articulated hauler in the world.” 

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