Volvo Construction Equipment to Expand Production in North America

As part of a larger global industrial footprint investment to support growing customer demand, Volvo Construction Equipment will begin producing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania.

• Shippensburg will add capabilities to produce mid- to large-size excavators, thereby increasing its global industrial footprint and improving flexibility.
• The total global investment of $261 million aims to strengthen Volvo CE's crawler excavator position across three main production sites in South Korea, Sweden and the United States.
• In addition, the Shippensburg site will add four large wheel loader models to its current wheel loader production.
• Production is planned to begin in the first half of 2026.

Volvo Construction Equipment (Volvo CE) is making a significant investment to expand production worldwide. For crawler excavators, three main sites will see approximately $261 million invested to expand crawler excavator production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics. These sites include Shippensburg, Penn., USA; Changwon, South Korea; and a location in Sweden.

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Volvo CE employees gathered for the announcement of a major investment in production capabilities at its North American headquarters in Shippensburg, Penn. In addition to existing wheel loader and compactor manufacturing, crawler excavators will be produced at this site beginning in 2026.

In Shippensburg, Volvo CE will not only add crawler excavator production but also expand wheel loader production to include large wheel loaders. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the Shippensburg factory.

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, with the goal to be production-ready in the first half of 2026.

Investment aims to bolster global machine availability

In a rapidly evolving market, strategically enhancing production capacity and flexibility will allow the OEM to meet current and future customer demands more effectively, according to Melker Jernberg, Head of Volvo CE.

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

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.

Jernberg says that fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation without compromising the high standards that Volvo CE equipment is known for.

North America to see reduced lead times and improved machine supply

“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% of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth.”

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. Today’s announcement is a win for central Pennsylvania, as it shows the company’s continued commitment to the local community and its economic vitality.

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