SHIPPENSBURG, Pa., June 11, 2025 – Volvo Construction Equipment (Volvo CE) has announced a significant expansion of its North American manufacturing operations, marking a key step in the company’s global strategy to meet rising customer demand and strengthen its industrial footprint. As part of a $261 million global investment, Volvo CE will begin producing crawler excavators and large wheel loaders at its North American headquarters in Shippensburg, Pennsylvania, with production slated to begin in the first half of 2026.

The Shippensburg facility currently manufactures soil and asphalt compactors as well as mid-size wheel loaders. The new expansion will add capabilities to produce mid- to large-size excavators and four models of large wheel loaders, reflecting Volvo CE’s ongoing commitment to regional manufacturing and supply chain resilience.

“This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg,” said Scott Young, Head of Region North America at Volvo Construction Equipment. “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.”

To prepare for the new production lines, Volvo CE will retrofit and upgrade its existing facility by installing new assembly lines, expanding automation technologies, and providing additional training for employees. The effort is expected to result in reduced lead times, expanded opportunities for local suppliers, and strengthened service to customers across the region.

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

The company emphasized that the investment is part of a larger strategy to distribute production across its three key crawler excavator facilities—in Shippensburg, Changwon (South Korea), and a site in Sweden. This approach will help Volvo CE reduce reliance on any single manufacturing hub, improve supply chain agility, and limit exposure to global shipping and logistics disruptions.

By fostering closer collaboration with local suppliers and producing machines nearer to customers, Volvo CE aims to mitigate economic or regulatory risks and better support the long-term growth of its business.

“Volvo CE is doubling down on its commitment to the North American market and the Shippensburg community,” said Young. The company acquired the site in 2007 from Ingersoll Rand and made it its North American headquarters in 2012. Over the next five years, it plans to invest an additional $40 million locally to further support manufacturing, innovation, and workforce development.

With over 10,000 employees worldwide, Volvo CE is one of the largest manufacturers of premium construction equipment, offering products and services in over 140 countries. The company is part of the Volvo Group, a global leader in transport and infrastructure solutions.

Originally reported by Business wire.