Over the next couple of years, Volvo Construction Equipment (Volvo CE) plans to spend USD 100 M in its Shippensburg, Pennsylvania, USA manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America. Also, the Volvo CE North American sales headquarters and Volvo Rents will relocate from Asheville, North Carolina to Shippensburg, by September 2012.
It makes sense, when possible, to manufacture products close to where the customers are. Producing Volvo wheel loaders, articulated haulers and excavators in Shippensburg will result in shorter lead times for customers. Volvo CE will work closely with local suppliers to increase the North American content of the products, which will reduce the exposure to exchange rate fluctuations.
A new Customer and Demonstration Center will be built in Shippensburg. In addition, Volvo CE will put up a new office building on the campus to house its Regional Sales Headquarters and its Training Center.
Since the acquisition of the Shippensburg facility in 2007, Volvo Construction Equipment has continuously invested in the existing plant. In June 2010, a 18,580 m2, USD 30 M expansion of the facility was finalized, to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.
Manufacturing Volvo wheel loaders, articulated haulers and excavators in Shippensburg, PA will have no significant impact on the current production in other Volvo locations. It will, however, further improve the competitiveness and profitability of the total business.