The Volvo Group is investing approximately 10 billion Korean Won (about 7.8 million USD) to establish a new electric battery pack production line at the Changwon facility in preparation for the next generation of electrified equipment.
This investment will see Volvo Group Korea build the battery pack production facility at the Changwon plant by June 2024, aimed at responding to the demand for electrified equipment in the Asia-Pacific region. The Changwon plant is the largest excavator production facility within the Volvo Construction Equipment Group and a core manufacturing base that produces 55% of all Volvo excavators worldwide.
In line with scientifically based carbon reduction goals, Volvo Construction Equipment and Volvo Group Korea aim to create a carbon-neutral value chain across all business areas by 2040. They have set an interim goal of achieving 35% of sales from electrified equipment by 2030. Last April, Volvo Group Korea established a mass production line for electric excavators and now, with the domestic production of electric fuel solutions, they are accelerating the implementation of their electrification roadmap and enhancing their position as a key production base for electric excavators.
The new battery pack production line at the Changwon plant will occupy approximately 760 pyeong (2,500 square meters) and will produce and distribute electric battery packs and various other electric fuel solutions. Volvo Group Korea plans to begin construction on the battery pack production line this April, with completion and mass production expected by June 2024.
Andrew Knight, CEO of Volvo Group Korea and Head of Excavator Operations, expressed, “We are pleased to make another significant leap in line with the electrification vision of Volvo Construction Equipment, following the recent completion of our electric excavator mass production line. The Changwon plant will respond to sustainable construction machinery interests and demands at the forefront of the industry as a key production base for Volvo excavators.”
Moreover, Volvo Construction Equipment launched the 2.5-ton 100% electric excavator ECR25 Electric in the Korean market last year and successfully mass-produced the 22-ton JEC230E model, exporting 35 units to Norway.
Lim Sang-jin daedusj@autodiary.kr