Volvo CE breaks ground on $100 million expansion

Volvo Construction Equipment (Volvo CE) broke ground on the first phase of a $100 million expansion of its site in Shippensburg, Pa., on May 4. The first phase includes construction of a new America’s headquarters office. When complete, the development will include not only a new office building and customer demonstration center, but also will localize production of some of the company’s larger
construction machines.

For example, the new series of wheel loaders — L60G, L70G and L90G — will be the first of three new machine types expected to come off the production line. Larger models of the wheel loader, excavator and articulated hauler product lines are planned in the future. The factory could eventually produce 70 percent of Volvo CE machines sold in North America.

“This groundbreaking symbolizes Volvo CE’s commitment to North America and indeed to the whole Americas region,” says Göran Lindgren, president of Sales Region Americas. “The investment will increase the company’s flexibility and agility, enabling us to meet customer demands faster.”

The design of the new America’s headquarters building follows in the footsteps of an on-going expansion project in the factory. The new office building will be 36,000 sq. ft., consisting of two floors and a “bridge” that will connect the new building with existing facilities.

Efforts also are being made to secure LEED certification for the office building. LEED (Leadership in Energy and Environmental Design) certification requires that buildings be designed, constructed and operated with careful consideration for environmental impact on the health of occupants. The Shippensburg facility recently received a Silver LEED certification for the 2010 expansion of the manufacturing area.

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

The Shippensburg facility employs more than 800 people and makes more than 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.