NEW RIVER VALLEY, Va. — The Volvo Group Friday said it would invest nearly $400 million over six years to upgrade the New River Valley plant that produces all Volvo trucks sold in North America.
The upgrades include expansion of the industrial footprint and installation of a variety of state-of-the-art equipment that will improve plant efficiency and deliver even higher product quality for customers.
“The outstanding product line currently produced at NRV has strongly positioned Volvo Trucks for the future,” said Peter Voorhoeve, president of Volvo Trucks North America. “This investment is another sign of our confidence in that future and will help us prepare for even more exciting products — powered by both diesel and electric drivetrains — in the coming years.”
Virginia Gov. Ralph Northam joined company and local officials to reveal the expansion, which will be eligible for a Virginia Major Employment and Investment grant of up to $16.5 million and other incentives.
Virginia’s Pulaski County will support the project by granting Volvo 222 acres of adjacent property to expand the campus, and providing $500,000 toward site improvements. In addition to its financial investment, Volvo announced plans to create 777 new jobs at the facility over the next six years.
Major components of the investment include a new 350,000-square-foot building that will ultimately house truck cab welding operations; an expansion of the existing plant to allow for further improvements to the facility’s paint operations and overall material/production flow; and a variety of equipment upgrades, including installation of several state-of-the-art dynamometers for vehicle testing.
“This investment will give our employees the tools they need to continue providing our customers the highest quality products,” said Franky Marchand, vice president and general manager of the NRV plant. “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. Creating more value-added processes through these investments is good for our employees, our plant and our region.”