Volvo CE is looking to expand its crawler excavator production facilities. Image: Volvo CE

The OEM says that this will help them to meet growing customer demands, mitigate supply chain risks through localised production and reduce reliance on long-distance logistics.

In a press release, Volvo CE 鈥� one of the world鈥檚 top ten OEMs by sales, as seen in the most recent Yellow Table 鈥� said that the investment would strengthen its position and expand its crawler excavator footprint globally to meet growing customer demand and prepare for sustainable solutions

The three locations receiving investment are production facilities in in South Korea, Sweden and the US. The total cost of the investment is approximately 2,500 MSEK (US$260 million) with the largest share dedicated to the Changwon factory in South Korea.

The move should mitigate supply chain risks through localised production, reducing reliance on long-distance logistics, and managing economic and regulatory challenges. Additionally, it aims to lower carbon emissions by minimising transportation distances.

鈥淲e understand the need to respond to growing demand and are excited to expand our facilities to serve customers better,鈥� said Melker Jernberg, Head of Volvo CE.

鈥淭his investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers.鈥�