Volvo Construction Equipment is expanding its manufacturing operations in Shippensburg, Pennsylvania, as part of a global \$261 million investment to boost production of crawler excavators and large wheel loaders across key international sites.
The Shippensburg facility will add assembly capabilities for mid- to large-size crawler excavators and four large wheel loader models, complementing its current output of soil and asphalt compactors and mid-size wheel loaders. These upgrades are part of a broader initiative to enhance Volvo CE’s flexibility, reduce supply chain vulnerabilities, and meet rising customer demand in North America.
The factory will undergo modifications to its existing space, including the installation of new assembly lines, the integration of advanced automation technologies, and workforce training. Production is expected to begin in the first half of 2026.
Along with Shippensburg, Volvo CE is also investing in facilities in South Korea and Sweden, reinforcing its global manufacturing footprint and lessening reliance on long-distance logistics. By increasing regional production, the company anticipates faster delivery times and greater availability of machines in North America, with over half of the region’s supply eventually produced domestically.
The company, which acquired the Shippensburg site in 2007 and made it its North American headquarters in 2012, plans to invest an additional $40 million locally over the next five years. This expansion represents a strategic effort to foster collaboration with local suppliers, strengthen regional supply chains, and support economic development in central Pennsylvania.
Source: volvoce.com