Volvo breaks ground on US$ 100 million expansion

Volvo Construction Equipment has broken ground on the first phase of a US$ 100 million expansion of its site in Shippensburg, Pennsylvania, US.. The first phase includes construction of a new America's headquarters office.

When complete the development will include offices, a demonstration centre and production facilities for some of the company's larger construction models. The first new models to come off the lines at the plant will be the L60G, L70G and L90G wheeled loaders, with larger wheeled loaders, excavators and articulated dump tricks (ADTs) expected to follow. Volvo says the factory could eventually produce 70% of the machines it sells in North America.

"This groundbreaking symbolises Volvo CE's commitment to North America and indeed to the whole Americas region. The investment will increase the company's flexibility and agility, enabling us to meet customer demands faster," said Volvo's president of the Americas sales region Göran Lindgren.

The new Headquarters office is expected to be ready for occupation by the beginning of 2013.

The Shippensburg facility employs over 800 people and makes over 50 different models of asphalt pavers, soil and asphalt compactors, milling machines and motor graders. This figure is set to rise to around 70 models by 2015. Volvo acquired the facility in April 2007 as part of its purchase of Ingersoll Rand's road development division.