Volvo Construction Equipment will move the majority of its motor grader activities located in Goderich, Ontario, Canada, to the company’s facility in Shippensburg, Pennsylvania, by the year 2010, at an estimated restructuring cost of approximately $45 million to be recorded in the third quarter of 2008. The decision to consolidate the operations for road machinery in North America to Shippensburg was made to improve the competitiveness and profitability of the total road machinery business and will also reduce the company’s exposure to exchange rate fluctuations within North America. The move will affect 500 employees and will take place in various phases, finishing no later than 2010.
Volvo CE’s motor grader business in Ontario to be moved to Pennsylvania
October 1, 2008