Volvo Construction Equipment plans to invest $100 million in its U.S. operations over the next couple of years, the company said. Volvo plans to begin production of Volvo wheel loaders, excavators and articulated haulers in its Shippensburg, Pa., facility and relocate its regional sales and rental activities to the facility.

“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 further 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 U.S.”

The company will build a world-class customer and demonstration center in Shippensburg, it said, and 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, N.C.-based employees will be given the opportunity to relocate to Shippensburg. The move, which will affect about 220 employees, will be concluded by September 2012, Volvo said. The company is developing a plan to help with relocation, and a human resources plan for those who cannot or choose not to relocate.

Volvo CE has continuously invested in the plant since acquiring the facility in 2007. In June 2010, a 200,000-square-foot, $30 million expansion of the facility was finalized, to improve manufacturing flow and increase production space to incorporate the production of Volvo motor graders.