Volvo Construction Equipment to Expand Production in North America

Business Wire

a day ago

SHIPPENSBURG, Pa.--(BUSINESS WIRE)--Volvo Construction Equipment (Volvo CE) is making a significant investment to expand production worldwide. For crawler excavators, three main sites will see approximately $261 million invested to expand crawler excavator production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics. These sites include Shippensburg, Penn., USA; Changwon, South Korea; and a location in Sweden.
"This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg." -Scott Young, Head of Region North America, Volvo Construction Equipment
Share
In Shippensburg, Volvo CE will not only add crawler excavator production but also expand wheel loader production to include large wheel loaders. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the Shippensburg factory.
Updates will be made to the existing space within the factory to install assembly lines, integrate more automation technologies into the manufacturing process and train employees, with the goal to be production-ready in the first half of 2026.
Investment aims to bolster global machine availability
In a rapidly evolving market, strategically enhancing production capacity and flexibility will allow the OEM to meet current and future customer demands more effectively, according to Melker Jernberg, Head of Volvo CE.
"We must respond to growing demand, and we're excited to expand our facilities to serve our customers better," said Jernberg. "This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value."
By expanding production capabilities in key markets, Volvo CE will reduce dependency on any single site and become less reliant on long-distance logistics. Supply chain risks will also be mitigated by expanding domestic supplier bases, allowing the OEM to more nimbly manage any economic or regulatory challenges.
Jernberg says that fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation without compromising the high standards that Volvo CE equipment is known for.
North America to see reduced lead times and improved machine supply
'Bringing excavator production to North America and growing the range of wheel loader models built here has always been part of our long-term industrial plan, so it's exciting to finally share this news with our employees, dealers and customers,' said Scott Young, Head of Region North America. 'This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth.'
Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. On top of recent investments, Volvo CE will invest approximately $40 million locally over the next five years. Today's announcement is a win for central Pennsylvania, as it shows the company's continued commitment to the local community and its economic vitality.
[For additional photos, click here.]
Volvo Construction Equipment (Volvo CE) is a leading international manufacturer of premium construction equipment, and with over 10,000 employees, it is one of the largest companies in the industry. Volvo CE offers a wide range of products and services in more than 140 countries through its global distribution network. Volvo CE is part of the Volvo Group. The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 101,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm.
Expand