Volvo Construction Equipment Consolidating North American Industrial Operations

Volvo Construction Equipment has decided to consolidate its North American industrial operations by removing excess industrial capacity in the Americas.

As a result, the company’s Asheville, N.C. manufacturing facility will close by March 31, 2010. The production from Asheville will be moved to other existing Volvo CE locations, while ensuring uninterrupted supply to our North American dealers and customers.

The company’s manufacturing of wheel loaders will move to Arvika, Sweden; excavators will be produced in Changwon, South Korea and Cabs for motor graders will be moved to Shippensburg, Pa.

“Although the decision was necessary from a business standpoint, we fully understand that the affected employees – who in the current downturn are already going through challenging times – will face additional difficulties,” said Patrick Olney, executive VP, Global Operations. “We will do what we can to help our employees through the transition.”

“Volvo CE’s commitment to the US market remains strong,” said Olof Persson, president and CEO of Volvo Construction Equipment, “This decision has no impact on the ongoing significant investments in Shippensburg, PA, USA, where the Volvo CE plant is being expanded to receive the motor grader production and the manufacturing of grader cabs.”