A huge investment in its manufacturing operations is being made by Volvo Construction Equipment and the firm is also seeing the head of the division become CEO of the entire group.
A huge investment in its manufacturing operations is being made by 2394 Volvo Construction Equipment and the firm is also seeing the head of the division become CEO of the entire group. The firm's board of directors is appoint Olof Persson, 46, currently president of Volvo Construction Equipment, as the new president and CEO of Volvo. Persson will assume the position as president of Volvo and CEO of the Volvo Group on September 1st this year when Leif Johansson, as announced previously, retires. As of May 1st, Olof Persson will become executive vice president and deputy CEO and work parallel with Leif Johansson. Meanwhile, Volvo CE plans to spend US$100 million on 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 Persson. "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 customer and demonstration centre 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 centre. 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. Since the acquisition of the Shippensburg facility in 2007, Volvo Construction Equipment has continuously invested in the existing plant. In June 2010, a $30 million expansion of the facility was finalised, 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, will have no significant impact on the current production in other Volvo locations however.
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 customer and demonstration centre 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 centre. 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. Since the acquisition of the Shippensburg facility in 2007, Volvo Construction Equipment has continuously invested in the existing plant. In June 2010, a $30 million expansion of the facility was finalised, 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, will have no significant impact on the current production in other Volvo locations however.
