Swedish firm Volvo Construction Equipment, owned by the Volvo Group, disclosed plans on February 17 to invest SEK 80 million ($7.8 million) in battery pack production at its Changwon excavator plant in South Korea.
Purpose
By 2030, Volvo CE wants to move away from fossil and sell 35% of its machines as electric models. 10 years after that, the company aims to be 100% fossil free.
That said, this investment is crucial for the company to achieve its ambitious targets.
Furthermore, the new plant will develop diverse battery packs for its parent company Volvo Group, as it aims to be the top excavator maker worldwide.
“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. We are also home to a highly skilled and motivated workforce who are fully committed to meeting our future environmental targets.”
Andy Knight, Volvo Group Korea’s Head of Operations Excavator and Managing Director
About the new plant
As mentioned, Volvo Group committed to spending SEK 80 million (around $7.8 million) for the development of a new plant and equipment at the Changwon excavator plant in South Korea.
For context, the Changwon plant is the company’s biggest excavator production site globally at about 1.1 million square meters, which manufactures approximately 55% of its output. It is also worth noting that the company’s new-gen electric excavators enable lesser noise generation and more effective operation, significantly enhancing the job site experience.
Going back, the company will erect the new plant inside the existing component workshop at the Changwon plant without compromising current operations. It is expected to measure around 2,500 sq. meters once fully developed.
As per the press release, the construction will commence in April 2023. Meanwhile, the production of the commercial battery pack will start in June 2024.
