Volvo Construction Equipment is a leader in sustainable and battery-powered construction equipment manufacturing, and the company intends to stay in front by spending more than $260 million to expand its global production capacity — starting with a $40 million expansion of its Shippensburg, PA plant in 2026.
The Swedish construction giant will invest more than $260 million in three sites globally, expanding its crawler excavator production to meet growing customer demand while, at the same time, mitigating supply chain risks and reducing its reliance on long-distance logistics (and, of course, avoiding tariffs wherever possible).
“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” offers Melker Jernberg, global Head of Volvo CE. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”
Pennsylvania power up
The Shippensburg facility will add crawler excavator production to its existing lines, but also expand wheel loader production to include some of the company’s largest wheel loaders, adding those to the soil and asphalt compactors and mid-size wheel loaders that are manufactured and developed at the Shippensburg factory, today.
“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,” said Scott Young, Head of Region North America for Volvo CE. “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.”
The remaining millions will be spent across sites in Changwon, South Korea, and an unspecified production site in Sweden.
Electrek’s Take
If the goal of the Trump tariffs is to bring more investment into American manufacturing, it’s hard to argue that they’re not working — in this case, at least. Whether or not they’ll lead to more isolation and an even bigger gulf between American technology standards and the rest of the world’s as they advance their big battery-electric and even battery-swapping heavy equipment assets remains to be seen.
SOURCE | IMAGES: Volvo CE.
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