Volvo Group will invest $400 million to expand and upgrade its heavy-duty truck plant in New River Valley, Va.
The investment will add equipment and make changes that will allow for production of both diesel and electric trucks.
Volvo will use electric powertrain components from its Swedish parent to refit its popular VNR model as an electric truck. It plans to launch sales of the electric truck in 2020.
“This investment is another sign of our confidence in that future,” said Peter Voorhoeve, president of Volvo Trucks North America. “And it will help us prepare for even more exciting products – powered by both diesel and electric drivetrains.” Volvo will continue to sell the VNR as a diesel-powered model. Virginia is helping the truck manufacturer expand. The project can receive a grant of up to $16.5 million and other incentives, according to Ralph Northam, Virginia’s governor.
Pulaski County, Va., will grant Volvo 222 acres of adjacent property to expand the campus and provide $500,000 toward site improvements.
The upgrade and expansion will take six years to complete and create 777 new jobs at the plant, Volvo said. The plant currently employs 3,500 workers.
The expansion includes a new 350,000-square-foot building that will house truck cab welding operations. The existing plant also will grow to allow improvements to the paint operations and overall production flow. Additionally, Volvo plans several equipment upgrades such as installing state-of-the-art dynamometers for vehicle testing.
“This investment will give our employees the tools they need,” said Franky Marchand, the plant’s general manager.
“We’re very grateful to the Commonwealth of Virginia, Pulaski County, and the citizens in this community for their continued support of our business and our people,” he said.