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Volvo CE invests in battery pack production

Volvo Group has invested in its CE unit as it aims to produce sustainable battery packs for its excavators and vehicles

Volvo’s Construction Equipment (CE) unit has announced it is investing in battery pack production at its South Korea excavator plant as it aims to drive sustainable solutions.

Volvo says it will invest in the technology at its plant in Changwon, South Korea as it looks to drive industry transformation in the sector.

The Changwon plant, which specialises in the production of excavators and is the biggest excavator production site in Volvo CE, will benefit from a $7.8 million investment from Volvo Group to enable a wide range of battery pack solutions to be manufactured.

Volvo says this is another step forward towards meeting targets that revolve around fossil-free operations, with 35 per cent of machine sales to be electric by 2030.

The new facility at the Changwon plant will produce a wide range of common electric storage solutions (battery packs) for Volvo Group and become a core competence centre for electric excavators.

This will enable Volvo Group to offer more sustainable solutions to its APAC markets in a more flexible, cost-effective and agile way and will include supply chain, manufacturing and logistics.

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“As the largest plant in Volvo CE and the core site for excavator development and production, Changwon is at the forefront of our shift to a sustainable future,” Volvo Group Korea managing director Andy Knight says.

“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.”

The new production facility will be built inside the current component workshop at Changwon – without disruption to the existing operation. Once complete the facility will be approximately 2,500 sq. meters including assembly and logistics areas.

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