Volvo Construction Equipment’s sole U.S. manufacturing facility will add new production lines in the first half of 2026 through a $261 million global production investment.
The Shippensburg, Pennsylvania, plant will be expanded to produce midsize and large crawler excavators, as well as four new wheel loader models. The expansion will include new assembly lines and more automation technology.
The additional production means over half of the company’s North American machine supply can be built at the Shippensburg plant.
Volvo CE confirmed in a statement to Equipment World that the models set to be produced in Shippensburg range from the EC140 to the EC500, and that none of its current global excavator production will cease.
Volvo CE acquired the Shippensburg facility from Ingersoll Rand in 2007, and its current production includes midsized wheel loaders, asphalt compactors and soil compactors. The facility employs 700 and houses a Volvo CE museum, customer center and the company’s regional headquarters.
Other crawler excavator production will be added to Volvo CE’s Changwon, South Korea, plant and at one of the company’s five plants in Sweden, for a total production investment of $261 million. Volvo CE also stated it will invest $40 million in Shippensburg over the next five years.
Volvo CE said the investment is driven by the need to meet growing demand, improve its supply chain’s logistics and flexibility, and reduce its reliance on long-distance logistics. Volvo CE said it will also expand its domestic supplier bases “to more nimbly manage any economic or regulatory challenges.”
Scott Young, head of region North America, said the production move was always part of the company’s long-term industrial plan.
Volvo CE’s current global excavator production supply chain, according to its website, is handled at the following facilities:
- Belley, France: compact excavator design
- Hallsberg, Sweden: excavator manufacturing
- Konz, Germany: design and production of wheeled excavators
- Wroclaw, Poland: excavator design and testing support
- Pederneiras, Brazil: crawler excavator production
- Bangalore, India: crawler excavator production
- Changwon, South Korea: production of crawler excavators, wheeled excavators and their components
- Linyi, China: compact excavator production
- Shanghai, China: crawler excavator production
With this investment announcement, Volvo CE joins a growing list of manufacturers choosing to invest in their U.S. manufacturing facilities since U.S. President Donald Trump began expanding the use of tariffs.
Sakai recently announced it will move some of its compactor production from Japan to the U.S., and JCB plans to increase the size of its new Texas plant as a response to Trump’s tariffs.
