Volvo Construction Equipment expands production in North America
Volvo Construction Equipment will begin producing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania.
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, Pennsylvania, USA; Changwon, South Korea; and a location in Sweden.
In Shippensburg, Volvo CE will add crawler excavator production and 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," says 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 for which Volvo CE equipment is known.
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