Volvo Construction Equipment (Volvo CE) is investing $261 million across its facilities in Shippensburg, Pennsylvania, South Korea, and Sweden to enhance production capacity, reduce supply chain risks, and meet growing customer demand in North America and beyond.
The Shippensburg facility, Volvo CE’s North American headquarters, will receive approximately $40 million to expand its manufacturing capabilities. By the first half of 2026, the plant will begin producing mid- to large-size excavators and four large wheel loader models, complementing its existing production of soil and asphalt compactors and mid-size wheel loaders. This expansion will enable over 50% of Volvo CE’s North American machinery to be manufactured in Shippensburg, significantly reducing lead times and reliance on long-distance logistics.
The investment will fund new assembly lines, advanced automation technologies, and employee training programs at the Shippensburg plant, located at 200 Rowe Road. These upgrades will enhance operational efficiency and support the company’s commitment to meeting evolving market demands.
“This investment marks a significant milestone in our long-term industrial strategy,” said Scott Young, Head of Region North America at Volvo CE. “By producing over half of our North American machine supply in Shippensburg, we’re not only shortening delivery times but also creating opportunities for supplier growth and regional economic development.”
The expansion aligns with Volvo CE’s global strategy to strengthen production flexibility and mitigate supply chain challenges. “By enhancing our manufacturing capabilities in key markets, we can better respond to customer needs and navigate economic or regulatory shifts,” said Melker Jernberg, Head of Volvo CE.
The Shippensburg facility, which celebrated 50 years of heavy machinery production in September 2024, has been Volvo CE’s North American headquarters since 2012. Employing over 650 workers as of fall 2024, the plant is expected to add new positions as a result of this investment, further contributing to the local economy.
For more information, contact:
Volvo CE Public Relations
media@volvoce.com
Read the orginial announcement here: https://www.volvoce.com/united-states/en-us/about-us/news/2025/volvo-ce-to-expand-production-in-north-america/
