Volvo Construction Equipment will expand its production capacity in Shippensburg, Pennsylvania, as part of a $261 million global investment. Currently, Shippensburg manufactures compactors and mid-size wheel loaders. The expansion will encompass the production of large wheel loaders and the inclusion of crawler excavators. Assembly lines will be installed, additional automation technologies will be integrated into the manufacturing process, and employee training will be implemented. The corporation intends to commence production in the first half of 2026.
“Our long-term industrial strategy has consistently included the expansion of our wheel loader model line and the relocation of excavator production to North America,” stated Scott Young, the head of Region North America. “This increase in production capacity enables the construction of over 50% of our North American machine supply in Shippensburg, which not only reduces lead times but also creates opportunities for supplier growth.”
The investment also encompasses the expansion of excavator production in Changwon, South Korea, and a location in Sweden. The company asserts that the increased production of excavators will “address the increasing demands of customers, mitigate supply chain risks, and decrease dependence on long-distance logistics.”
In a statement, Melker Jernberg, the head of Volvo CE, stated, “We are eager to expand our facilities in order to better serve our customers and meet the increasing demand.” “This investment demonstrates our dedication to innovation and quality, enabling us to provide even more value.”
The company will be able to decrease its dependence on any specific site and become less reliant on long-distance logistics as a result of the global move. The OEM will be able to more effectively manage any economic or regulatory challenges by expanding domestic supplier bases, which will also mitigate supply chain risks, according to the company. Volvo CE equipment is recognized for its exceptional quality, and Jernberg believes that fostering partnerships with local suppliers and consumers will enhance the company’s ability to sustain growth and innovation.
source: construction equipment
