Volvo Construction Equipment Outlines U.S. Expansion Plans

March 22, 2011
Company will spend $100 million to add to Shippensburg, Pa., operations.
Volvo Construction Equipment said it plans to spend $100 million over the next few years to expand its Shippensburg, Pa., manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America. Volvo Construction Equipment, a unit of Torslanda, Sweden-based AB Volvo, will relocate its North American sales headquarters and Volvo Rents offices from Asheville, N.C., to Shippensburg by September 2012."It makes sense, when possible, to manufacture products close to where our customers are," said Olof Persson, president and CEO of Volvo Construction Equipment. "The global demand for Volvo construction equipment is rapidly increasing and we need to make investments to meet future demands in the region. Producing Volvo wheel loaders, articulated haulers and excavators in Shippensburg will result in shorter lead times for our customers. "We will work closely with local suppliers to increase the North American content of our products. This will further reduce our exposure to exchange rate fluctuations, which will already be positively affected by our bringing more production to the U.S.A."The company plans to build a customer and demonstration center in Shippensburg. In addition, Volvo CE will build a new office building on the campus to house its regional sales headquarters, its Volvo Rents offices and its training center.All Asheville-based employees will be given the opportunity to relocate to Shippensburg, the company said. The move, which will affect about 220 employees, will be concluded no later than September 2012. Since the acquisition of the Shippensburg facility in 2007, Volvo Construction Equipment noted it has continuously invested in the existing plant. In June 2010, the company completed a 200,000-square-foot, $30 million expansion of the facility to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.
About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors. 

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.  

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