Volvo CE’s Shippensburg, Pennsylvania, facility will add capabilities to produce mid- to large-size excavators.
Volvo Construction Equipment
Shippensburg employees celebrate announcement
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 approximately $40 million locally over the next five years. The expanded production capabilies are a win for central Pennsylvania, as it shows the company’s continued commitment to the local community and its economic vitality.
“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 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.”
The investment aims to strengthen and expand Volvo CE´s global crawler excavator footprint
In a rapidly evolving market, this strategic initiative will significantly enhance capacity and flexibility, allowing Volvo CE to meet current and future contractors demands effectively. By adding production capacity near key markets, Volvo CE will improve operational efficiency and resilience, ensuring shorter delivery times and tailored solutions for regional needs.
This approach mitigates supply chain risks through localized production, reducing reliance on long-distance logistics, and managing economic and regulatory challenges. Additionally, it aims to lower carbon emissions by minimizing transportation distances. By fostering collaboration with local suppliers and contractors, Volvo CE is positioned for sustained growth and innovation, reinforcing its market presence, utilizing existing and new competences and navigating complexities more effectively.
The Changwon factory remains a key site in the global industrial network
The Changwon site remains an important factory in the company´s global industrial network holding key competences for manufacturing, product development, and purchasing. The investment in Changwon is aimed at securing global volumes and capabilities while at the same time leveraging supply chain capabilities to enhance efficiency, reduce costs, and improve responsiveness to market demands.
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