Volvo Construction Equipment plans to add crawler excavator production to its facility in Shippensburg, Pennsylvania, as well as expand loader production there to incorporate large wheel loaders.
According to Volvo CE, soil and asphalt compactors and midsize wheel loaders are currently being manufactured at the Shippensburg plant.
The company says the initiative is part of an investment in three global sites: one in South Korea, a second in Sweden and the one in Shippensburg. More than $260 million will be infused into these three sites to expand crawler excavator production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics.
In Shippensburg, updates will be made to the existing space within the factory to install assembly lines, integrate more automation technologies and train employees – with the goal of being production ready in the first half of 2026.
“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.”
By expanding production capabilities in key markets, Volvo CE expects to reduce its dependency on any one site and become less reliant on long-distance logistics. Jernberg says fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation.
Additionally, Volvo CE says the North America market can expect to experience reduced lead times and improved machine supply.
“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 region North America at Volvo CE. “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.”
Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012.
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