Volvo CE releases details covering new production investment package

VCE EC500 will now be produced in North America (Photo: Volvo CE)

Volvo Construction Equipment has unveiled details covering a new $261 million investment package that will see new machines added to assembly lines in three locations around the world.

A portion of the investment will see crawler excavators added to assembly operations at three locations, including Shippensburg, Pennsylvania, Changwon, South Korea and a location in Sweden.

In addition, the Shippensburg plant will also see large wheel loaders added to its existing lineup. Currently, soil and asphalt compactors, together with mid-size wheel loaders are produced at the factory.

Updates will be made to the plants and assembly lines, including integration of additional automated operations into the manufacturing process. The goal is to be production ready by the first half of 2026.

According to Volvo CE, the changes are being driven by current and future customer demand. It’s also put forward that supply chain risks will also be mitigated by expanding domestic supplier bases and allowing the company to ‘more nimbly manage any economic or regulatory changes’.

“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” said Melker Jernberg, head of Volvo CE. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”

According to Volvo CE, engines for the new additions to North American machine production will continue to be sourced in Europe and Japan.

Following the upgrades, the Shippensburg site will be capable of delivering 50% of the company’s machine supply in North America, reducing lead times and creating new supplier opportunities.