Volvo Construction Equipment has entered into a memorandum of understanding with Posco to jointly advance material and technology development for construction machinery, with a clear focus on carbon neutrality. The agreement was formalised Friday at Volvo’s manufacturing facility in Changwon, South Gyeongsang Province, where senior executives from both organisations were present.
Under the terms of the collaboration, the two companies will work closely to exchange technical expertise and accelerate innovation in areas linked to electrification and sustainability. This includes joint research into next generation materials, alongside coordinated efforts in equipment testing and technology validation. The partnership will also extend to technical seminars and broader knowledge-sharing initiatives aimed at strengthening long-term engineering capabilities. The construction materials focus remains central to this collaboration.
A primary area of emphasis will be the development of weight reduction technologies using high-strength steel, supported by advancements in welding and manufacturing processes critical to construction machinery production. Volvo CE will oversee the integration of these materials into equipment design and application, while Posco will contribute through the development of high-performance materials and refined manufacturing techniques.
The partnership is also expected to streamline supply chain integration, covering the full spectrum from raw material sourcing to final assembly. This approach is intended to enhance operational efficiency and support the rollout of Volvo’s next-generation machinery. Kang Ho-jin, vice president of the R&D section at Volvo CE, highlighted the strategic importance of the collaboration, stating, “Regarding next generation construction machinery development, connection between material technologies and manufacturing technologies are a core competitive aspect.” He added, “By applying the technologies developed with Posco, we will enhance both durability and performance and secure a competitive product lineup.” The collaboration further reinforces the role of construction materials in driving innovation.