Volvo to invest in Pennsylvania facility

Volvo Construction Equipment (Volvo CE) intends to invest at least $40 million at its existing manufacturing complex in its headquarters city of Shippensburg, Pennsylvania, so it can begin producing crawler excavators and large wheel loaders.

The company, part of the Sweden-based Volvo Group, says the Shippensburg project is part of a total global investment of $261 million designed to increase its crawler excavator capacity at three sites, with the others being in South Korea and Sweden.

In Shippensburg, Volvo CE says it not only will add crawler excavator production but also expand wheel loader production to include larger wheel loaders.

“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,” says Scott Young, head of Volvo CE’s North America region.

“This increase in production capacity means that over 50 percent of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth."

Currently, soil and asphalt compactors and midsize 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 new capacity planned to come online in the first half of next year.

“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” says Melker Jernberg, head of Volvo CE. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”

Volvo says by expanding production capabilities in dispersed markets, Volvo CE will reduce dependency on any single site and become less reliant on long-distance logistics. It also notes that supply chain risks will be mitigated by expanding domestic supplier bases, allowing more nimble management of any economic or regulatory challenges.

“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," Volvo CE says. "On top of recent investments, Volvo CE will invest approximately $40 million locally over the next five years.”