Sweden-based Volvo Construction Equipment, a construction equipment manufacturer, plans to invest approximately $261 million to expand crawler excavator production at three sites include one in Shippensburg.
Expansion will allow the company to reduce reliance on long-distance logistics, mitigate supply chain risks and meet growing customer demands. The company will install assembly lines and integrate more automation technologies.
The company also will expand wheel loader production in Shippensburg. Volvo Construction Equipment purchased the facility in 2007 and moved its regional headquarters there in 2012.
“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,” Scott Young, head of Region North America, said. “This increase in production capacity means that over 50 percent 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 other facilities are located in Sweden and South Korea. The new equipment is expected to be production-ready during the first half of 2026.
Volvo Construction Equipment employs more than 101,000 people worldwide and serves customers in nearly 190 markets.