Volvo CE Expands Excavator Production in North America

Eskilstuna, Sweden - Volvo Construction Equipment (Volvo CE)., a construction equipment manufacturer, is investing significantly in its global manufacturing capabilities, with a focus on boosting production capacity and improving supply chain resilience. As part of this effort, the company will invest around $261 million across three major sites to expand crawler excavator production: Shippensburg, Pennsylvania (USA); Changwon, South Korea; and a location in Sweden.

In Shippensburg, Volvo CE plans to introduce crawler excavator production and expand its wheel loader offerings to include large models. The plant currently manufactures soil and asphalt compactors as well as mid-sized wheel loaders.

The expansion will involve updates to existing factory space, including new assembly lines, increased automation, and workforce training. The facility is expected to be production-ready by the first half of 2026.

Mr. Melker Jernberg, Head of Volvo CE, said, “In a rapidly evolving market, strategically enhancing production capacity and flexibility will allow the OEM to meet current and future customer demands more effectively. We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better. This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”

By producing machines closer to end users, Volvo CE aims to reduce reliance on long-distance logistics and mitigate potential disruptions. Expanding local supplier networks will also help the company navigate regulatory or economic uncertainties more effectively.

Mr. Scott Young, Head of Region North America, said, “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.”

This expansion signals a strong vote of confidence in the North American market and positions Volvo CE for continued growth and innovation in the years ahead.