Volvo Construction Equipment is expanding production to Shippensburg.
According to a release, the expansion to begin producing crawler excavators and large wheel loaders in Shippensburg is part of a larger global industrial footprint investment to support increasing customer demand.
Head of Volvo Construction Equipment (CE) Melker Jernberg said enhancing production capacity and flexibility will allow the company to more effectively meet customer demands.
“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” Jernberg said in a statement. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”
Shippensburg will add capabilities to produce mid- to large-size excavators, 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 plans to start in the first half of 2026.
Volvo CE is investing 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; Changwon, South Korea; and a location in Sweden.
In Shippensburg, Volvo CE will add crawler excavator production and expand wheel loader production to include large wheel loaders. Soil and asphalt compactors and mid-size wheel loaders are manufactured at the Central Pennsylvania 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.
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 company to manage economic and regulatory challenges.
Jernberg said 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.
“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,” Head of Region North America Scott Young said. “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.”
The Shippensburg site was acquired by Volvo CE in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012. Per the release, Volvo CE will invest approximately $40 million locally over the next five years
