Volvo Expands Excavator Production in Sweden

Volvo Construction Equipment (Volvo CE) will invest about $73 million to build a new crawler excavator assembly plant in Eskilstuna, Sweden, aimed at meeting rising European demand.

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The facility—roughly 323,000 square feet—will assemble up to 3,500 machines per year on a mixed production line, producing both electric and internal combustion excavators in the 15–55 ton operating weight classes.

“This strategic investment in the future of excavator production in Eskilstuna marks a new era for us and the Swedish industry,” Melker Jernberg, head, said in a statement. “It will significantly contribute to reinforcing Sweden’s position as a leader in advanced sustainable manufacturing. Bringing additional high-value production and utilizing our cutting-edge technology in Eskilstuna will support local job creation, skills development, and a continued collaboration with Sweden’s strong network of industrial suppliers and research partners. Furthermore, it will strengthen Europe’s innovation and engineering power and industrial resilience in an increasingly competitive global market. To get full leverage, we also count on a strong and swift execution on Europe’s and Sweden’s promised agenda on regulatory and administrative simplification.”

Groundwork is expected to begin in the first half of 2026, with production slated to start within two years of project initiation.

The new plant forms part of Volvo CE’s broader multimillion-dollar investment announced in June to bolster crawler excavator production globally, with projects in Sweden, South Korea, and the United States.

Volvo’s Shippensburg, Pennsylvania, facility will begin producing crawler excavators in the first half of 2026.

“Bringing excavator production to North America and growing the range of wheel loader models built here has always been part of our long-term industrial plan,” said Scott Young, head of Region North America, in a statement. “This increase in production capacity means that over 50% of our North American machine supply can be built here in Shippensburg, resulting in shorter lead times while also creating opportunities for supplier growth.”

--This piece was created with the assistance of generative AI tools and was edited by our content team for clarity and accuracy.