Volvo Construction Equipment recently announced that, over the next couple of years it plans to invest $100 million in its Shippensburg, Pennsylvania, USA, manufacturing facility and begin production of Volvo wheel loaders, excavators and articulated haulers in North America. Volvo CE’s North American sales and Volvo Rents headquarters will relocate from Asheville, North Carolina, to Shippensburg by September 2012.

“It makes sense, when possible, to manufacture products close to where our customers are,” said Olof Persson, president and CEO of Volvo CE. “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. We will work closely with local suppliers to increase the North American content of our products. This will further reduce our exposure to exchange rate fluctuations, which will already be positively affected by our bringing more production to the U.S.”

The company said a “world class” customer and demonstration center will be built in Shippensburg. In addition, it will construct a new office building on the campus to house its regional sales headquarters, Volvo Rents offices and training center. About 220 Asheville-based employees will be given the opportunity to relocate.

Volvo CE said it has continuously invested in the existing plant since its acquisition of the Shippensburg facility in 2007. A 200,000-ft2, $30-million expansion of the facility was finalized in June 2010 to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders. According to the company, production of wheel loaders, articulated haulers and excavators in Shippensburg will have no significant impact on current production from other Volvo locations.

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