Volvo Upgrades North American Operations

Over the next few years, Volvo CE plans to spend $100 million in its Shippensburg, Pa., manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America. Also, the Volvo CE North American sales headquarters and Volvo Rents will relocate 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, 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.

A customer and demonstration center will be built in Shippensburg. In addition, Volvo CE will put up 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 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 has continuously invested in the existing plant. In June 2010, a 200,000 sq ft, $30 million expansion of the facility was finalized, to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.

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