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

  • The future is looking greener and cleaner at CONEXPO-CON/AGG 2023
    March 17, 2023

    The CONEXPO-CON/AGG 2023 exhibition in Las Vegas has been bigger and better than ever before as the North American construction and aggregates sector embraces the green revolution and the federal government invests heavily in the nation’s infrastructure.

    The show was full of great new ideas for driving down emissions, finding new power platforms, and improving the industry’s productivity, profitability, and safety levels.

  • Multiple role machine
    February 15, 2012
    The introduction of a new backhoe loader line is a major development for Case, Mike Woof reports. Case is introducing its new backhoe loader line-up for the European market, which offers key performance improvements. There are four models being introduced, the 695ST, 590ST, 580ST and 580T, aimed at different market segments and intended to encompass the entire range of customer requirements. This is an important launch for CNH, which has been offering a fully-integrated backhoe loader in its line-up since 1
  • Liebherr's strong performance
    March 17, 2023


    According to Liebherr, 2023 will be a challenging year with shortages of manpower and supply chain problems continuing to complicate its operations around the world. 

  • Comer Industries sees nearly a 10% drop in sales for full year 2015
    February 22, 2016
    Year end results for Comer Industries showed revenue down at €327 million, a 9.4% dip from €361 million for fiscal year 2014. However, the company reported that excluding the sale of the electric wheel product line in January last year, the revenue drop would have been 5%. Comer Industries is based in Reggiolo, Italy and has around 1,240 employees. It designs and manufactures advanced engineering systems and mechatronic solutions for power transmission for major producers of agricultural and industrial ma