Skip to main content

Volvo CE US$100 million Americas expansion

Volvo Construction Equipment president Pal Olney stressed the long-term importance to the company of the North American market while formally recognising the industry giant’s US$100 million expansion programme at its Shippensburg, Pennsylvania facility. Olney cut the ribbon to officially open Volvo CE’s new Americas’ headquarters building. The event also saw the unveiling of the first wheeled loader to roll off the Shippensburg site’s cutting edge assembly line. On the significance of the two big landmarks,
March 22, 2013 Read time: 4 mins
Volvo CE’s new Americas’ headquarters building
Volvo Construction Equipment president Pal Olney stressed the long-term importance to the company of the North American market while formally recognising the industry giant’s US$100 million expansion programme at its Shippensburg, Pennsylvania facility.

Olney was joined by US Federal Highway Administrator Victor Mendez; and Swedish Ambassador to the United States Jonas Hafström in cutting the ribbon to officially open 359 Volvo CE’s new Americas’ headquarters building. The event also saw the unveiling of the first wheeled loader to roll off the Shippensburg site’s cutting edge assembly line.

On the significance of the two big landmarks, Olney said: “This should serve as a very clear signal that Volvo CE is committed to this [North American] market and in a better position than ever before to offer our customers products that are made by Americans, for Americans.

“Longer term, building machines closer to our customers will have a positive impact for US-based suppliers, who will gain more business; for customers, who will enjoy shorter lead times; and for Volvo CE, which will be less exposed to currency swings.”

Speaking to North American and international journalists at a press conference at Shippensburg HQ prior to the ribbon cutting and wheeled loader unveiling, Olney said that the combined North and South America market will continue to be second biggest in the world for Volvo CE. However, he forecasted a flat North American market in 2013, with development of around +5/-5%.

Focusing on new product lines, Olney said Volvo CE’s new 7000 Series Paver, unveiled at the recent 6069 World of Asphalt event in San Antonio, Texas, was a “huge step forward” in paving.
“It has 100 plus features compared to previous generations. It’s Tier 4 certified but with Volvo power for the first time. It offers much lower noise, better visibility, better comfort, a new control system. There’s a huge list of advantages to this product. We think it’s going to be extremely welcome in the industry. We’re quite excited about it,” said Olney.

Initial wheeled loader manufacturing at Shippensburg is focusing on the L60-L90 model range. “These machines are in high demand in North America. It’s easier to start up production of smaller machines and work our way up,” said Sean Glennon, vice president of operations at the Shippensburg facility. “The investment we make in these smaller models will allow us to eventually launch into the bigger machines and meet a wider scope of customer needs.”

As part of the same investment at Shippensburg, Volvo CE will also open a world-class customer centre in the area in the first quarter of 2014.

The new Americas headquarters serves both the North and Latin American Volvo CE business. The site’s global technology centre employs around 200 people and provides development expertise to the wider Volvo business.

The Shippensburg facility has been committed to producing high end construction equipment for nearly 40 years. Volvo CE acquired the business from 3773 Ingersoll Rand in April 2007. A previous $30 million, 18,580m² site expansion was completed in June 2010 and included a new assembly hall and materials building. The office expansion, which opened in March, adds an additional 3,344m² and two smaller production buildings, due to open in April this year, will provide a further 3,437m², bringing the total size of the expanded facility to 60,387m².

Currently, the site employs more than 1,000 employees from nearly 20 countries, working in operations, technology, sales & marketing, and customer support.

As well as wheeled loaders, the Shippensburg facility also makes more than 50 road machinery models, including soil and asphalt compactors, motor graders, pavers, screeds, and milling machines. Operations include welding, large machining, paint and assembly.    

Speaking prior to the ribbon cutting ceremony, Mendez said: “Under President Obama we’ve had an incredible focus on the economy, and this is the kind of investment we’re really looking to deploy throughout the entire nation to get American workers back to work. We’ve also got a big focus on reinvesting in our infrastructure, especially our roads and bridges, and this [Volvo CE wheeled loaders] is the kind of equipment we need out there.”

Also joining Olney, Mendez and Hafström at the Shippensburg inauguration ceremony on Thursday 21 March were Pennsylvania Department of Community and Economic Development Secretary Alan Walker and 1,000 Volvo CE Shippensburg employees.

For more information on companies in this article

Related Content

  • JCB’s historic fleet deal
    December 4, 2013
    JCB has won one of the biggest single orders in its history after securing a deal for 900 machines worth more than €61 million (£53 million) from leading UK plant hirer Fork Rent. The deal for Loadall telescopic handlers cements Ipswich, eastern England-based Fork Rent’s position as the UK’s biggest hirer of the product and with the most modern fleet of this type of machine. The machines are manufactured at JCB's World HQ at Rocester, Staffordshire, central England, and all are to be delivered before the en
  • Volvo Penta starts engine production in Brazil
    July 1, 2016
    Volvo Penta has started production of industrial engines for the power generation market at the Volvo Group’s facility in Curitiba, Brazil. A new production line has been set up at the plant for the Volvo Penta engines, which include the 13litre TAD-1344GE and TAD-1345GE models. Ron Huibers, president of Volvo Penta of the Americas said, “One of Volvo Penta’s ambitions is to improve our global supply chain for our products with competitive lead times, at a competitive cost. By producing these industrial
  • Volvo CE’s arduous Andes assignment
    August 20, 2013
    Volvo Construction Equipment is working in some of the world’s most treacherous terrain to construct a high-speed road link across the Andes Mountains. A fleet of 60 Volvo Construction Equipment (Volvo CE) road-building machines is being used to construct a 140km highway across the Andes Mountains, from Bucaramanga, Colombia’s eighth largest city, to Cucuta on the border – providing the country with a much-needed high-speed link with Venezuela. Tasked with this huge undertaking is innovative Colombian highw
  • Volvo CE’s arduous Andes assignment
    August 20, 2013
    Volvo Construction Equipment is working in some of the world’s most treacherous terrain to construct a high-speed road link across the Andes Mountains. A fleet of 60 Volvo Construction Equipment (Volvo CE) road-building machines is being used to construct a 140km highway across the Andes Mountains, from Bucaramanga, Colombia’s eighth largest city, to Cucuta on the border – providing the country with a much-needed high-speed link with Venezuela. Tasked with this huge undertaking is innovative Colombian highw