Volvo Group is investing $30 million to expand the company’s Hagerstown, Maryland, facility. As one of the world’s largest producers of heavy duty diesel engines, the company plans to add as many as 140 full-time employees and retain 1,340 existing full-time jobs at its manufacturing facility.
“We not only have a state-of-the-art facility here in Washington County, but more importantly we have a highly-skilled and capable workforce and a world-class product offering,” said Wade Watson, the Volvo Group’s VP and Plant Manager. “This is one more milestone along a trail of many that demonstrates the Volvo Group’s commitment to this market and to our workforce. I am also pleased to see how our partnerships with Maryland’s Department of Business and Economic Development and Washington County have contributed to the decisions to invest in this site and provide new opportunities for our community for years to come.”
The Volvo Group’s Hagerstown facility has been home to heavy-duty powertrain development and production since it opened as a Mack Trucks, Inc. facility in 1961. The Volvo Group acquired Mack and the Hagerstown plant in 2001, and since then has invested more than $350 million to modernize the facility and install new production capability to produce the world’s cleanest burning heavy-duty diesel engines and advanced transmissions. In 2012, the plant produced more than 45,000 engines and 21,000 transmissions for Volvo Group brands.
To assist with project costs, the Maryland Department of Business and Economic Development approved a $4 million conditional loan, which is based on job retention and creation and capital investment. In addition, Washington County has approved a $200,000 conditional loan under the same terms. The company is also eligible for a number of State and local tax credits and training programs.
“Volvo’s continued investment in Maryland and in Washington County sends a strong message that we have one of the best workforces in the world,” said Gov. Martin O’Malley. “State and local officials have worked closely with Volvo over the years to retain these good paying jobs for Western Maryland. We look forward to continuing our excellent relationship with this world-class company.”
“We worked to coordinate state support for this expansion because we’re committed to creating more good paying, middle-class jobs and bringing new economic opportunities to families in Western Maryland,” said Lt. Governor Brown. “I look forward to continuing our work with state and local leaders and our business community to strengthen Maryland’s manufacturing industry and ensure that top companies like Volvo stay and grow in Maryland.”