Volvo Construction Equipment today unveiled a significant global investment strategy, with a key focus on expanding its production capabilities in North America. As part of a $261 million global initiative, the company will begin manufacturing hight strength steel and iron-alloy crawler excavators and large wheel loaders at its facility in Shippensburg, Pennsylvania.
The Shippensburg plant, which currently produces soil and asphalt compactors and mid-size wheel loaders, will undergo substantial upgrades to accommodate the new production lines.
Production of mid- to large-size excavators and four additional large wheel loader models is slated to commence in the first half of 2026. This move will significantly bolster Volvo CE's manufacturing footprint globally, with the other two primary investment sites being Changwon, South Korea, and a location in Sweden.
Scott Young, Head of Region North America for Volvo Construction Equipment, emphasized the strategic importance of this expansion. “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,” Young stated. “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.”
Melker Jernberg, Head of Volvo CE, highlighted the company's commitment to adapting to a dynamic market. “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.” He added that by expanding production capabilities in key markets, Volvo CE aims to reduce dependency on any single site, foster collaboration with local suppliers and customers, and position itself for sustained growth.
The expansion in Shippensburg involves updating existing factory space, integrating more automation technologies into the manufacturing process, and comprehensive employee training. This will ensure that the facility is production-ready well in advance of the 2026 target.
Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. Today’s announcement builds upon recent investments, with Volvo CE committing an additional $40 million locally over the next five years. The expansion is expected to foster growth within the domestic supplier base, creating a more robust and resilient supply chain less susceptible to global disruptions.
