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Investing.com -- Volvo (OTC:VLVLY) Construction Equipment (Volvo CE) announced a major $261 million investment to expand its crawler excavator production across three global sites to meet growing customer demands.
The expansion will take place at facilities in Shippensburg, Pennsylvania; Changwon, South Korea; and a location in Sweden. The investment aims to mitigate supply chain risks and reduce dependence on long-distance logistics.
At the Shippensburg facility, which currently manufactures soil and asphalt compactors and mid-size wheel loaders, Volvo CE will add crawler excavator production and expand wheel loader production to include large wheel loaders. The company plans to update existing factory space to install assembly lines, integrate more automation technologies, and train employees, with production expected to begin in the first half of 2026.
"We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better," said Melker Jernberg, Head of Volvo CE. "This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value."
The strategic enhancement of production capacity and flexibility will enable the company to meet current and future customer demands more effectively. By expanding production in key markets, Volvo CE will reduce dependency on any single manufacturing site and build stronger relationships with local suppliers.
For North America specifically, the expansion means shorter lead times and improved machine supply. Scott Young, Head of Region North America, explained that over 50% of North American machine supply will be built at the Shippensburg facility once the expansion is complete.
"Bringing excavator production to North America and growing the range of wheel loader models built here has always been part of our long-term industrial plan," Young said.
Volvo CE acquired the Shippensburg site in 2007 from Ingersoll Rand (NYSE:IR) and relocated its regional headquarters there in 2012. The company plans to invest approximately $40 million locally over the next five years, demonstrating its commitment to central Pennsylvania’s economic development.
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