As part of a significant global investment, Volvo Construction Equipment will begin manufacturing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania.
For crawler excavators, three main sites will see about $261 million invested to expand production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics. The three sites include Shippensburg, Changwon, South Korea and a location in Sweden.
Alongside crawler excavator production, Volvo CE will also expand wheel loader production to include large wheel loaders in Shippensburg. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the Shippensburg factory.
“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.”
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.
Volvo CE is aiming to begin production of the new lines in the first half of 2026.
“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,” said Scott Young, Head of Region North America.
“This increase in production capacity means that over 50 per cent of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth.”
By expanding production capabilities in key markets, Volvo CE will reduce dependency on any single site and become less reliant on long-distance logistics. Supply chain risks will also be mitigated by expanding domestic supplier bases, allowing the OEM to more nimbly manage any economic or regulatory challenges.
As well, Jernberg said fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation without compromising standards.
Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. On top of recent investments, Volvo CE will invest about $40 million locally in the next five years.
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