Volvo Cars to Invest 1.3 Trillion KRW in Swedish Plant to Boost Electric Vehicle Production

Introduction of New Manufacturing Process 'Mega Casting'

Volvo Cars Sweden Torslanda Plant Overview.
Photo by Volvo Cars

[Asia Economy Reporter Yoo Hyun-seok] Volvo Cars announced on the 9th that it will invest 10 billion kronor (approximately 1.3 trillion KRW) in its Swedish Torslanda plant to strengthen its next-generation pure electric vehicle production capabilities and introduce a new manufacturing process called "Mega Casting." This follows an agreement between Volvo Cars and Northvolt to invest 30 billion kronor (approximately 3.9 trillion KRW) in the development and manufacturing of high-quality customized batteries.

The Torslanda plant will overhaul the entire production process, including body manufacturing, painting, battery, and body assembly, by applying Mega Casting. Additionally, by simplifying the manufacturing process, it aims to reduce costs related to raw materials and distribution and decrease the carbon footprint across the supply chain.

Mega Casting, applied to aluminum body manufacturing, offers many advantages in terms of sustainability, cost, and vehicle performance throughout the vehicle's lifecycle. For example, casting key parts of the vehicle floor structure with aluminum components can reduce vehicle weight and improve energy efficiency, thereby increasing driving range. It also optimizes the use of interior and luggage space, enhancing the vehicle's versatility.

Besides body manufacturing, Mega Casting will be applied throughout the Torslanda plant, including painting, new battery assembly, and logistics. The painting plant will reduce energy consumption and carbon emissions by introducing new equipment and processes. The new battery assembly plant will allow integrated installation of battery cells and modules following the shape of the vehicle floor.

The body assembly plant will be remodeled to integrate battery cells and modules along the vehicle floor shape to accommodate next-generation pure electric vehicles. For example, a new manufacturing method will be adopted, including the addition of a "marriage point" where the vehicle body and understructure meet. Other improvements include optimized logistics for product and parts transportation and the refurbishment of rest areas and locker rooms to provide a comfortable working environment for employees.

Javier Varela, Head of Operations at Volvo Cars, said, "This investment in the Torslanda plant marks a very meaningful moment announcing the dawn of the pure electric vehicle era that Volvo Cars aims for," adding, "We will secure long-term growth momentum throughout the plant to realize a sustainable electrification era."

Volvo Cars is one of the fastest manufacturers in the automotive industry to decide on investing in Mega Casting adoption. It is expected to offer customers next-generation pure electric vehicles equipped with price competitiveness, long driving range, fast charging, high-level vehicle safety technologies, and sustainability.

H?kan Samuelsson, CEO of Volvo Cars, said, "With this investment, we have taken an important step toward transforming into a pure electric vehicle company," and added, "We will continue ongoing changes to become a pure electric vehicle company through the Torslanda plant, Volvo Cars' largest production base."

The Torslanda plant, established in April 1964 by King Gustaf VI Adolf of Sweden, is one of Volvo Cars' oldest production bases. It employs approximately 6,500 workers and has an annual production capacity of 300,000 vehicles.

This content was produced with the assistance of AI translation services.