Volvo Construction Equipment is to spend $100m on its US facility in Shippensburg, Pennsylvania for production of Volvo wheel loaders, excavators and articulated haulers in North America. The move will mean shortened lead times of equipment to the market.
“It makes sense, when possible, to manufacture products close to where our customers are,” said Olof Persson, President and CEO of 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.”
Persson went on to say that the company would work closely with local suppliers to increase the North American content of its products.
“This will further reduce our exposure to exchange rate fluctuations, which will already be positively affected by our bringing more production to the USA,” he added.
Volvo CE North American sales headquarters and Volvo Rents (the equipment rental division) will relocate from Asheville, North Carolina to Shippensburg by September 2012. A Customer and Demonstration Center will also be built there.
The latest investment in the Shippensburg facility follows on from a $30m expansion in June last year when 200,000ft2 was added to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.