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Volvo CE plans to spend 100 MUSD in its North American operations and bring its regional sales and rental activities to Shippensburg, PA, USA.

Volvo CE plans to spend 100 MUSD in its North American operations and
bring its regional sales and rental activities to Shippensburg, PA, USA.
 
 
 
Over the next couple of years, Volvo CE plans to spend 100 million USD
in its Shippensburg, PA, USA manufacturing facility and start production
of Volvo wheel loaders, excavators and articulated haulers in North
America.  Also, the Volvo CE North American sales headquarters and Volvo
Rents will relocate from Asheville, NC to Shippensburg, PA by September
2012.
 
“It makes sense, when possible, to manufacture products close to where
our customers are,” said Olof Persson, President and CEO of Volvo
Construction Equipment.  “The global demand for Volvo construction
equipment is rapidly increasing and we need to make investments to meet
future demands in the region. Producing Volvo wheel loaders, articulated
haulers and excavators in Shippensburg will result in shorter lead times
for our customers. We will work closely with local suppliers to increase
the North American content of our products. This will further reduce our
exposure to exchange rate fluctuations, which will already be positively
affected by our bringing more production to the USA”.
 
A world class Customer and Demonstration Center will be built in
Shippensburg. In addition, Volvo CE will put up a new office building on
the campus to house its Regional Sales Headquarters, its Volvo Rents
offices, and its Training Center.
 
All Asheville, North Carolina based employees will be given the
opportunity to relocate to Shippensburg. The move, which will affect
about 220 employees, will be concluded no later than September 2012. A
comprehensive plan to assist with relocation is under development. For
those employees who are unable or not prepared to relocate, an extensive
human resources plan is currently being put in place.
 
Since the acquisition of the Shippensburg facility in 2007, Volvo
Construction Equipment has continuously invested in the existing plant. 
In June 2010, a 200,000 square foot, 30 million USD expansion of the
facility was finalized, to improve manufacturing flow and increase
production space to incorporate the production of Volvo motor graders.
 
Manufacturing Volvo wheel loaders, articulated haulers and excavators in
Shippensburg, PA will have no significant impact on the current
production in other Volvo locations.  It will also further improve the
competitiveness and profitability of the total business.
 
###
 
March 15, 2011
 
For more information, please contact:
 
Klas Magnusson                  Beatrice Cardon
+32 2 482 5065                  +1 828 650 2183               
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Volvo Construction Equipment (Volvo CE) is a major international company
developing, manufacturing and marketing equipment for construction and
related industries. Its products, leaders in many world markets, include
a comprehensive range of wheel loaders, hydraulic excavators,
articulated haulers, motor graders, soil and asphalt compactors, pavers,
milling machines and compact equipment.  Volvo CE is part of the Volvo
Group, one of the world's largest manufacturers of heavy duty diesel
engines (9 to 18 liter).  Volvo Group is one of the world's leading
manufacturers of trucks, buses and construction equipment, drive systems
for marine and industrial applications, aerospace components and
services. The Group also provides complete solutions for financing and
related services. The Volvo Group, which employs more than 90,000
people, has production facilities in 19 countries and sells its products
in more than 180 markets. Volvo Group sales for 2010 amounted to 36.7
BUSD*. The Volvo Group is a publicly-held company headquartered in
Gothenburg, Sweden. Volvo Shares are listed on Nasdaq OMX Nordic
Exchange and are traded OTC in the US.* $1 = SEK 7.206
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