With the company enjoying the effects of a strong global market – much of it driven by the success of its booming excavator product line, it was fitting that Volvo CE should this week celebrate two decades of excavator production at its Korean manufacturing facility in Changwon. At an event at the factory, Volvo CE President Melker Jernberg thanked the 2,200 employees, business suppliers and customers for their commitment over the last two decades, and highlighted the importance of excavators to the future success of the company.
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. “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.”