Latest news with #VolvoConstructionEquipment
Yahoo
13-06-2025
- Automotive
- Yahoo
Volvo to expand US construction equipment production
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Volvo Construction Equipment said it will begin producing crawler excavators and large wheel loaders at its Shippensburg, Pennsylvania, facility as part of a larger global investment to meet growing demand for its heavy machinery. The Volvo Group subsidiary plans to invest $261 million to expand crawler excavator production across three sites, including Shippensburg; Changwon, South Korea; and a location in Sweden, according to an announcement this week. The Shippensburg location, which currently manufactures soil and asphalt compactors, as well as midsize wheel loaders, will also add four large wheel loader models to its production, Volvo CE said. The upgrades are expected to be ready in the first half of 2026. Volvo CE is moving forward with its investment after a period of slow sales impacted by market uncertainty. Construction equipment makers Caterpillar and Deere, which have strong footholds in the U.S., have also struggled with lower demand and are investing in ways to support workforce development and upgrades to existing facilities. Volvo CE, which recently brought to market a new line of haulers and excavators, saw first quarter global sales drop 8% to 21.12 billion Swedish kronor ($2.2 billion) compared to last year. Sales volume declines in Europe and North America offset growth in Asia and South America markets. Despite the shortfall, the company reported improved service sales and an overall increase in orders and deliveries. 'As a global company we are understandably affected by these turbulent times, but we have shown resilience in the face of uncertainty,' Melker Jernberg, head of Volvo CE, said in an April 23 statement. 'Our industry's transformation may be slower than we would like, but our commitment remains strong as we continue to invest into building a better world for all.' Part of the reason for Volvo CE's excavator expansion is to mitigate supply chain risks as tariffs pressure companies to reevaluate their operations and network of suppliers. The company said the $261 million investment will help it 'reduce dependency on any single site' and become 'less reliant on long-distance logistics.' Volvo CE also plans to mitigate risks by expanding its domestic supplier bases, which would allow it to 'more nimbly manage any economic and regulatory challenges,' the company said. '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,' Scott Young, president and head of Volvo CE's North America region, said in a statement. In addition to more factory lines, Volvo CE plans to integrate more automation technologies into its manufacturing process and upskill its workers as part of the investment. A spokesperson did not provide details about the technology upgrades prior to press time. Volvo CE acquired the Shippensburg facility in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. Separate from the machinery expansion, the company has pledged to invest $40 million in the central Pennsylvania area over the next five years. Recommended Reading Volvo to receive $208M to accelerate heavy-duty electric truck production
Yahoo
11-06-2025
- Automotive
- Yahoo
Volvo CE to invest $260.3m in crawler excavator production across three global sites
Volvo Construction Equipment (Volvo CE), a division of the Volvo Group, has unveiled a strategic global investment plan to bolster its crawler excavator production. The initiative, which aims to meet increasing customer demands, will enhance the company's operational efficiency and resilience by localising production and reducing dependency on long-distance logistics. The investment, totalling approximately Skr2.5bn ($260.3m), will be distributed across three primary production locations in South Korea, Sweden, and North America, with the largest allocation earmarked for the Changwon factory in South Korea. These investments are scheduled to be made over the forthcoming years. This strategic move is set to significantly increase capacity and flexibility, enabling Volvo CE to effectively meet both current and future customer needs. By establishing production capacity closer to key markets, the company anticipates shorter delivery times and the ability to offer solutions tailored to regional requirements. This approach also serves to lower supply chain risks and manage economic and regulatory challenges more adeptly. Furthermore, the investment is expected to lower carbon emissions by minimising transportation distances and fostering closer collaboration with local suppliers and customers. Volvo CE head Melker Jernberg said: "We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better. "This investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers." The Changwon site in South Korea will undergo upgrades to secure global volumes and capabilities within Asia. In Europe, Sweden has been chosen for the production of crawler excavators, with the final decision on location, scope, and timing to be made later in 2025. Additionally, an excavator assembly line will be installed in the existing factory in Shippensburg, US, to cater to the North American market. The Changwon factory is a key component in Volvo CE's global industrial network, holding essential competencies in manufacturing, product development, and purchasing. "Volvo CE to invest $260.3m in crawler excavator production across three global sites" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
11-06-2025
- Automotive
- Korea Herald
Volvo Construction Equipment to expand Korean plant
Swedish heavy machinery builder commits largest share of $264m global investment to Changwon factory in South Gyeongsang Province Volvo Construction Equipment has decided to expand and upgrade its Korean production site in Changwon, South Gyeongsang Province, as the Swedish heavy machinery manufacturer looks to better cope with growing customer demand worldwide. According to Volvo CE on Wednesday, the company will invest approximately $264 million to bolster its crawler excavator footprints at three main production sites in Korea, Sweden and North America. The largest share of the investment is slated for Korea's Changwon factory. Although the allocation of funds between the sites was not disclosed, the company said the investments would be carried out over the coming years. Volvo CE said the investment plan includes upgrading the Changwon site to secure global volumes and capabilities in Asia while leveraging supply chain capabilities to enhance efficiency, reduce costs and improve responsiveness to market demands. Volvo CE also pointed out that the Changwon plant remains an important factory in the company's global industrial network as it holds key competencies for manufacturing, product development and purchasing. The Changwon plant, which exports over 80 percent of the total production, has the biggest excavator manufacturing capacity within the Volvo Group worldwide. For the rest of the investments, Volvo CE said the final decision regarding the location, scope and timing for the Swedish expansion will be made later this year. The company will set up an excavator assembly line at its existing factory in Shippensburg, Pennsylvania, for the North American market. By adding production capacity near key regions, the heavy machinery maker expects to improve operational efficiency and resilience while ensuring shorter delivery times and offering customized solutions for regional needs. The global expansion is also aimed at lowering carbon emissions by minimizing transportation distances, the company said. "We understand the need to respond to growing demand and are excited to expand our facilities to serve customers better," said Melker Jernberg, head of Volvo CE. "This investment underscores our commitment to quality, innovation and competence, allowing us to deliver even greater value. This expansion demonstrates our efforts to respond to customer demand by investing in our crawler excavator business closer to key markets and customers."
National Post
10-06-2025
- Automotive
- National Post
Volvo Construction Equipment to Expand Production in North America
Article content As part of a larger global industrial footprint investment to support growing customer demand, Volvo Construction Equipment will begin producing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania. Article content Shippensburg will add capabilities to produce mid- to large-size excavators, thereby increasing its global industrial footprint and improving flexibility. The total global investment of $261 million aims to strengthen Volvo CE's crawler excavator position across three main production sites in South Korea, Sweden and the United States. In addition, the Shippensburg site will add four large wheel loader models to its current wheel loader production. Production is planned to begin in the first half of 2026. Article content Article content SHIPPENSBURG, Pa. — 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. Article content 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. Article content 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. Article content Investment aims to bolster global machine availability Article content 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. Article content '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.' Article content 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. Article content 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. Article content North America to see reduced lead times and improved machine supply Article content '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.' Article content 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. Article content [For additional photos, Article content .] Article content 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. Article content Article content Article content Article content Article content Contacts Article content Questions? Contact Amy Crouse. Article content Article content Article content Article content Article content LinkedIn: Article content Volvo Construction Equipment Article content Article content Facebook: Article content @VolvoCENA Article content Article content Instagram: Article content @VolvoCE_NA Article content Article content Article content Article content
Business Wire
10-06-2025
- Automotive
- Business Wire
Volvo Construction Equipment to Expand Production in North America
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
