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Volvo CE inaugurates new facilities to support electrification

A manufacturing facility being inagurated
The inauguration at Volvo CE’s Braås facility in Sweden. Volvo CE

Volvo CE has inaugurated new facilities at its plants in Changwon, South Korea, and Braås, Sweden, to support its strategy to offer more sustainable solutions and meet its sustainability commitments.

An investment totalling SEK 440 million ($40.5 million) has been used to develop its facilities in Changwon and Braås.

"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," said Kamel Sid, head of operations at Volvo CE. "We have an ambition to be fossil-free and for 35 percent of our machine sales to be electric by 2030, so investing in our facilities is another important step on our electrification roadmap."

In Changwon, an investment of SEK 80 million ($7.8 million) has been used to build a new battery pack production facility. At the Braås plant in Sweden SEK 360 million ($32.7 million) has been used to expand production facilities to accelerate the phased shift to electromobility for articulated haulers.

"Our new battery facility in Changwon will produce a range of battery pack solutions for the Volvo Group," said Andrew Knight, head of excavator industrial strategy and managing director of Volvo Group Korea. "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. 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."

The new battery pack production facility in Changwon is now operational. The new battery pack will be used in the 23-ton Volvo EC230 Electric excavator which begins mass production in Changwon in August 2024. Changwon is the largest excavator manufacturing site in Volvo CE, producing around 55 percent of its total excavator volumes and with this investment, it will become a core competence centre for electric excavators. It is also an ideal location, close to battery module supply partners and other key suppliers in South Korea.

In Braås, the investment has been used to expand the manufacturing facilities at the plant, which specializes in the production of articulated haulers. Importantly, it will enable the factory to deliver a larger range of articulated haulers with different types of powertrains.

"Our employees at Braås have been instrumental in this project to develop our facilities," said Joakim Karlsson, head of global quality, safety, and sustainability, operations at Volvo CE. "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. 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."

The new building will be used for pre-delivery inspection (PDI) and final assembly, with work commencing on June 3. 

Company info

304 Volvo Way
Shippensburg, PA
US, 17257


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