(TNS) — Volvo Construction Equipment plans to invest $261 million to strengthen its crawler excavator production at three sites, including one plant in Franklin County.

The company plans to begin producing crawler excavators and large wheel loaders at its plant in Southampton Township, near Shippensburg.

The plant will add capabilities to produce mid- to large-size excavators. In addition, the site will add four large wheel loader models to its current wheel loader production. Currently, soil and asphalt compactors and mid-size wheel loaders are manufactured at the Franklin County factory.

“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, so it’s exciting to finally share this news with our employees, dealers and customers,” Scott Young, head of Region North America, said in a news release. “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.”

Updates will be made to the existing space within the factory to install assembly lines, integrate more automation technologies into the manufacturing process and train employees.

The company plans to begin construction in the first half of 2026.

Of the $261 million investment, Volvo Construction Equipment plans to invest approximately $40 million over the next five years at the Franklin County plant.

The other two main production sites for the crawler excavators are in Sweden and South Korea.

The company said it is making the large investment to expand crawler excavator production to meet growing customer demands, mitigate supply chain risks and reduce reliance on long-distance logistics.

“We must respond to growing demand, and we’re excited to expand our facilities to serve our customers better,” Melker Jernberg, head of Volvo Construction Equipment, said in a news release. “This investment underscores our commitment to quality and innovation, allowing us to deliver even greater value.”

Volvo CE acquired the Shippensburg-area site in 2007 from Ingersoll Rand and relocated its regional headquarters there in 2012.

Volvo Construction Equipment manufactures construction equipment, offering a wide range of products and services in more than 140 countries. The company has more than 10,000 employees.