Volvo CE Breaks Ground on $100 Million North American Investment

On May 4, Volvo Construction Equipment broke ground on the first phase of the 100 MUSD expansion of its site in Shippensburg, Pa. The first phase includes construction of a new America’s headquarters office. Incorporating the latest environmental building practices, the expansion is a visible sign of the company’s commitment to the important North American market.

When complete the development will include not only a new office building and customer demonstration center but also will localize production of some of the company’s larger construction machines.Made in the U.S.A.Volvo CE is making a commitment to have machines built locally. The expansion will bring production of some key product lines to Shippensburg. The new series of wheel loaders (L60G, L70G and L90G) will be the first of three new machine types expected to come off the production line. Larger models of the wheel loader, excavator and articulated hauler product lines are planned in the future. The factory could eventually produce 70 percent of Volvo Construction Equipment machines sold in North America.

President of Sales Region Americas Göran Lindgren said it’s an exciting time for everyone involved.

“This groundbreaking symbolizes Volvo CE’s commitment to North America and indeed to the whole Americas region,” said Lindgren. “The investment will increase the company’s flexibility and agility, enabling us to meet customer demands faster.”

Core Values Built In

The design of the new America’s Headquarters building follows in the footsteps of an on-going expansion project in the factory.

The new office building will be 36,000 sq. ft., consisting of two floors and a “bridge” that will connect the new building with existing facilities. Efforts also are being made to secure LEED certification for the office building. LEED (Leadership in Energy and Environmental Design) certification requires that buildings be designed, constructed, and operated with careful consideration for environmental impact of the health of occupants. The Shippensburg facility recently received a Silver LEED certification for the 2010 expansion of the manufacturing area.Operations President of VolvoCE Americas Andy Knight said the Shippensburg campus will be a world class facility.“We are an industry leader in so many ways and the actual facility we work in is no different. The infrastructure investment is just one way we are living Volvo CE core values of quality, safety and environmental care.”The new headquarters office is expected to be ready for occupation by the beginning of 2013.

The Shippensburg facility employs more than 800 people and makes more than 50 different models of asphalt pavers, soil and asphalt compactors, milling machines and motorgraders. This figure is set to rise to around 70 models by 2015. Volvo acquired the facility in April 2007 as part of its purchase of Ingersoll Rand’s road development division. Today it has become an important element of the worldwide Volvo Construction Equipment manufacturing footprint, spread across four continents.

For more information, visit