Volvo Construction Equipment (Volvo CE) has invested US$7.8 million in battery pack production at its manufacturing plant in Changwon, South Korea, The investment will enable the building of a new production facility at the Changwon plant in South Korea. The plant – which is already one of the largest production sites run by Volvo CE, producing around 55% of its total excavator volumes – is already 1.1 million square metres in size.
Once complete the facility will be approximately 2,500 sq. metres including assembly and logistics areas.
The new facility will produce a wide range of common electric storage solutions (battery packs) for Volvo. This will enable Volvo Group to offer more sustainable solutions to its Asia-Pacific markets in a more flexible, cost-effective and agile way and will include supply chain, manufacturing and logistics.
“As the largest plant in Volvo CE, Changwon is at the forefront of our shift to a sustainable future,” said Andy Knight, MD of Volvo Group Korea.
“This investment is an important milestone in our electrification roadmap and supports our recent investments in production facilities for electric excavators. Changwon is ideally located close to battery module supply partners and other key suppliers in South Korea to meet the needs of customers in the future.”
The new production facility will be built inside the current component workshop at Changwon – without disruption to the existing operation. The building work will begin in April 2023, with battery pack production expected to commence in June 2024.