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

  • Volvo CE stages successful six-site paving demo
    April 11, 2013
    Volvo Construction Equipment’s (CE) dealer in the Netherlands, Kuiken, recently hosted a live, five-day demonstration program using a Volvo P7820C ABG paver machine. On a road trip across the country, the Kuiken team visited six different customers, travelling more than 1,700km in total, and clocking up more than 60 hours of paving. “We wanted to test how the market and existing customers, as well as potential ones, would react to the Volvo P7820C ABG machine,” says Arjen Mostert, sales & support manager of
  • Asphalt paving design advances
    June 15, 2012
    A diverse array of advanced paver designs is now being offered in the asphalt paving sector – Mike Woof reports With the World of Asphalt and INTERMAT 2012 events having both taken place in recent months, a series of innovations have been introduced for the asphalt paving market. Developments have come to market that widen the array of both US and European asphalt paving systems and all the major manufacturers have developed new pavers and materials feeders to meet the latest emissions requirements. Demand
  • Deere’s big Brazilian investment
    May 14, 2012
    Deere & Company plans to build two new factories in Brazil to meet growing market demand for its construction equipment products in Brazil and other South American countries. The total investment is approximately US$180 million with Deere investing approximately $124 million of the total.
  • Chinese firm XCMG is developing its US presence
    March 5, 2014
    XCMG is increasing its presence in the North American market, emphasised by the fact that the machines on its stand at Conexpo 2014 are already sold. Yansong Wang is vice president and chairman for XCMG and said, “All the machines have been ordered by customers.” The nine machines included three excavators, a soil compactor, a wheeled loader and various cranes. The units meet North American Tier 4 emissions requirements and Wang said, “All the machines are powered by Cummins diesels. The machines are simil