Volvo Group said it would build a new heavy duty truck manufacturing plant in Mexico to supplement its US production.

The plant would provide additional capacity to support growth plans for both Volvo and Mack Trucks in the US and Canada plus Mack truck sales in Mexico and Latin America. The plant was expected to be operational in 2026.

The Mack LVO plant in Pennsylvania and the Volvo NRV plant in Virginia would continue to be the company’s main North American heavy truck production sites.

The Group has invested US$73m over the last five years in LVO expansion and upgrades, and is currently spending an additional $80m to prepare for future production.

The NRV plant is completing a six year, $400m expansion/upgrade to prepare for production of the new Volvo VNL model.

The new Mexico plant will occupy 1.7m square feet and focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands. It will be a complete conventional vehicle assembly factory including cab body in white production and paint.

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Volvo said adding Mexican production would “will “deliver logistical efficiencies for supporting sales to the southwestern/western regions of the US, and to Mexico and Latin America.

“It also provides a mature supply and production ecosystem that will complement the US system and increase the resilience and flexibility of the group’s North American footprint.”