Volvo CE invests US$40M to ramp-up Pennsylvania manufacturing

Volvo Construction Equipment (Volvo CE) is expanding its U.S. footprint — bringing 11 additional models into production at its facility in Shippensburg, […]
Scott Young, Volvo CE’s head of North America, speaking at the Aug. 19 event. Credit: Volvo CE 

Volvo Construction Equipment (Volvo CE) is expanding its U.S. footprint — bringing 11 additional models into production at its facility in Shippensburg, Pennsylvania. 

The company announced the expansion at an event attended by legislators and business leaders Wednesday. Volvo CE also said it is currently delivering its first batch of U.S.-manufactured excavators and larger wheel loaders to customers. 

Last year the company announced plans to localize more machine assembly. This move shortened customer lead times and mitigated supply-chain risks from President Donald Trump’s tariff policies.  

“What you see today is manufacturing resilience in action, adapting with purpose and speed to increase capacity and build more machines closer to our customers,” said Scott Young, Volvo CE’s head of region. 

Local investment

Joined by Pennsylvania congressperson John Joyce, Volvo CE announced its goal to grow its business with suppliers in the state by 30% by 2030. Its Shippensburg, Pennsylvania facility will account for more than 50% of the company’s North American machine supply, following planned expansion. 

“This facility right here in Shippensburg is not only building world-class construction equipment; it is creating opportunities for families and workers throughout our community,” said Joyce.

The company’s $40 million (C$55.1 million) investment brings its total to $1.4 billion in the U.S. since 2007. 

“Over the past 11 months, our teams have demonstrated exceptional commitment and execution to expand our production capabilities here in Shippensburg,” added Gustavo Casagrandi, the Shippensburg facility’s head of operations.

To support its business growth, the company has also partnered with the Franklin County Area Development Corporation. Volvo CE will invest more than $1.5 million in a local facility, in an effort to create more jobs in the region. 

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