South Korean steel producer, Posco and Volvo Construction Equipment (Volvo CE) have signed a memorandum of understanding (MoU) to collaborate on developing advanced materials and technologies for construction machinery, with a focus on carbon neutrality.
The agreement was signed at Volvo CE’s plant in Changwon, South Korea, and covers joint research into next-generation materials to support electrification and lower-emission equipment.
Under the partnership, the companies will exchange technical expertise, conduct testing and validation of new materials, and expand cooperation through technical seminars and joint development initiatives.
A key focus area includes weight reduction through the use of high-strength steel, along with advancements in welding and manufacturing technologies for construction equipment.
Volvo CE will lead machinery development and material applications, while Posco will support the process through the development of high-performance steel and production technologies. The collaboration also aims to strengthen supply chain integration from raw materials to final assembly.
Posco is a leading South Korean steelmaker with annual crude steel capacity of around 45 mln tons, operating major production hubs at Pohang and Gwangyang. The company is increasingly focused on high-value and green materials, including hydrogen-based steelmaking and battery materials, as part of its strategy to achieve net-zero emissions by 2050.
