Volvo Group Korea has signed a memorandum of understanding with South Korea-based POSCO Group to jointly develop high-performance materials and manufacturing technologies for next-generation construction equipment, according to South Korean media reports.
The agreement was signed at Volvo Group Korea’s Changwon plant and is aimed at supporting the transition toward electrification and carbon neutrality in the construction machinery sector.
Lightweighting and high-strength steel at the core
Under the partnership, the two companies will collaborate across the entire development cycle, from material research to real-world application and validation in equipment. The cooperation will focus on meeting rising demand for lighter machinery and stronger materials to reduce carbon emissions.
The scope of collaboration includes sharing data and technologies related to electrification and decarbonization, jointly developing materials for next-generation equipment, and conducting application testing and technical verification.
A key focus area will be structural lightweighting using high-strength steel, along with the development of advanced welding and manufacturing technologies for construction equipment. New technologies developed through the collaboration are planned to be gradually implemented in excavators produced at Volvo Group Korea’s facility in southeastern South Korea.
According to Volvo Group Korea, the collaboration is expected to improve durability, performance and overall product competitiveness.