Volvo Construction Equipment (Volvo CE) announced plans to begin producing crawler excavators and large wheel loaders in Shippensburg, Pennsylvania.
The Shippensburg factory will add capabilities to produce mid- to large-size excavators, and will also add four large wheel loader models to its current wheel loader production. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the site.
With the goal to be production-ready in the first half of 2026, updates will be made to the factory’s existing space to install assembly lines, integrate more automation technologies into the manufacturing process, and train employees.
Melker Jernberg, Head of Volvo CE, said that in a rapidly evolving market, strategically enhancing production capacity and flexibility will allow the OEM to meet current and future customer demands more effectively.
“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,” added Scott Young, Head of Region North America. “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.”
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The Shippensburg plans are part of a significant investment by the company to expand production worldwide. For crawler excavators, three main sites will see approximately $261 million invested to meet growing customer demands and reduce reliance on long-distance logistics. The other two sites are in South Korea and Sweden.
Volvo CE also said that supply chain risks will be mitigated by expanding domestic supplier bases, allowing the company to more nimbly manage any economic or regulatory challenges.
Jernberg added that fostering collaboration with local suppliers and customers will better position the company for sustained growth and innovation without compromising quality standards.
