1998 and all that
Volvo CE acquired the construction equipment business of Samsung Heavy Industries at a difficult time for the Korean economy. Shaken by the after-effects of the Asian Financial Crisis, the outlook was far from certain. But neither the company nor the workers had any reason for concern. Since the acquisition Volvo CE has surpassed its original objective to triple production – today production is four times higher, while profitability has jumped five times.
“The foundation of Volvo CE Korea 20 years ago is regarded as one of the most successful acquisitions in Volvo’s history,”
said Volvo CE President Melker Jernberg.
Volvo CE now exports excavators to 120 countries worldwide from its Changwon Plant, a factory that accounts for more than half of the company’s global excavator production. As of June 2018, the plant had produced 200,000 excavators, and exports have surged 10-fold since 1998.
“Not only did it boost South Korea’s economic credibility at a time of global financial uncertainty, but it established Volvo CE’s position as a market leader in excavator production. Since that time, we have grown the business to unprecedented levels with innovation, technology and productivity at the heart of our operations.”
SungMo (SM) Yang, Vice President of Excavator Business Platform at Volvo CE and Country Management Team Leader of Volvo CE Korea, said:
“The Changwon Plant has demonstrated remarkable growth, firmly establishing itself as a stable and leading global manufacturer in an ever-changing construction equipment industry. Thanks to 20 years of innovation, an outstanding work force and continued cooperation with local suppliers, we are set to continue this growth well into the future.”
Source: Volvo CE Press