AB Volvo will pour SK1.7 billion ($241 million) into two Swedish manufacturing plants in order to boost capacity to meet growing demand for its commercial vehicles in emerging markets in Eastern Europe and Asia.

Capacity for diesel engines will be hiked 20% and gearbox capacity will be increased 50%, Volvo says.

The truck maker says SK1.1 billion ($156 million) will be invested at a plant in Skovde, while SK400 million ($57 million) will go to boost production at its Koping facility.