Volvo Construction Equipment (Volvo CE) is making a major move to expand its global production capabilities — and North America is a key part of the plan. As part of a $261 million global industrial investment, Volvo CE will begin producing mid- to large-size crawler excavators and four large wheel loader models at its Shippensburg, Pennsylvania, facility.

This expansion is designed to support growing customer demand, reduce supply chain risks, and cut reliance on long-distance logistics. The global investment will support crawler excavator production across three key sites: Shippensburg in the U.S., Changwon in South Korea, and a location in Sweden.

Currently, the Shippensburg factory manufactures soil and asphalt compactors and mid-size wheel loaders. The new investment will reconfigure and update the existing space to support the additional machine builds, with production expected to begin in the first half of 2026.

More Machines, More Flexibility, Less Wait Time

As part of the expansion, Shippensburg will receive new assembly lines, automation technologies, and employee training programs to prepare for full-scale production. The move boosts not only machine availability but also agility in responding to market needs.

“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.”

By adding production capacity across multiple locations, Volvo CE aims to avoid bottlenecks, strengthen its domestic supplier base, and better manage economic and regulatory challenges. Jernberg noted that collaborating more closely with local suppliers and customers will help drive long-term growth and innovation without compromising the standards Volvo CE is known for.

Scott Young, Head of Region North America, echoed that sentiment: “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. 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 moved its regional headquarters there in 2012. In addition to the global investment, the company will invest approximately $40 million locally in the next five years.

This announcement marks a win not just for Volvo CE and its customers, but also for central Pennsylvania — reinforcing the company’s long-term commitment to regional economic growth and manufacturing excellence.