Latest news with #constructionequipment
National Post
2 days ago
- 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
Yahoo
2 days ago
- Automotive
- Yahoo
Volvo Construction Equipment announces strategic investment in global crawler excavator production
GOTHENBURG, Sweden, June 10, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) announces a strategic global investment in crawler excavator production at three key Volvo CE locations to meet growing customer demands, mitigate supply chain risks through localized production and reduce reliance on long-distance logistics. The investment aims to strengthen Volvo CE's position and expand its crawler excavator footprint globally to meet growing customer demand and prepare for sustainable solutions. The investment covers three main production sites worldwide, in South Korea, Sweden and North America. The total investment is approximately 2,500 MSEK with the largest share dedicated to the Changwon factory in South Korea. The investment aims to strengthen and expand Volvo CE´s global crawler excavator footprint In a rapidly evolving market, this strategic initiative will significantly enhance capacity and flexibility, allowing Volvo CE to meet current and future customer demands effectively. By adding production capacity near key markets, Volvo CE will improve operational efficiency and resilience, ensuring shorter delivery times and tailored solutions for regional needs. This approach mitigates supply chain risks through localized production, reducing reliance on long-distance logistics, and managing economic and regulatory challenges. Additionally, it aims to lower carbon emissions by minimizing transportation distances. By fostering collaboration with local suppliers and customers, Volvo CE is positioned for sustained growth and innovation, reinforcing its market presence, utilizing existing and new competences and navigating complexities more effectively. "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." The expansion will include three existing Volvo CE sites worldwide The plan includes upgrading the Changwon site in South Korea to secure global volumes and capabilities in Asia. For the production of crawler excavators in Europe, Sweden has been selected, and the final decision regarding the location, scope, and timing will be made later in 2025. Additionally, an excavator assembly line will be installed in the existing factory in Shippensburg, USA to serve the North American market. This strategic approach aims to strengthen Volvo CE's presence and operational efficiency across key regions and markets. The Changwon factory remains a key site in the global industrial network The Changwon site remains an important factory in the company´s global industrial network holding key competences for manufacturing, product development, and purchasing. The investment in Changwon is aimed at securing global volumes and capabilities while at the same time leveraging supply chain capabilities to enhance efficiency, reduce costs, and improve responsiveness to market demands. The total investment of the three sites is 2 500 MSEK, with the largest share dedicated to the Changwon factory. The investments will be made over the coming years. June 10, 2025 Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn 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 our 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 100,000 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. This information was brought to you by Cision The following files are available for download: Press release - Volvo Construction Equipment announces strategic investment in global crawler excavator production 250610-volvo-group-pressrelease View original content: SOURCE AB Volvo
