Volvo Group announced yesterday it will build a heavy-duty truck plant in Mexico to supplement its U.S. production.

The plant will provide additional capacity to support the growth of Mack Trucks and Volvo Trucks, producing trucks for the U.S. and Canadian markets. It is expected to be operational in 2026.

Volvo Group said in a release it will continue operating its current Mack and Volvo truck plants in Pennsylvania and Virginia.

The Mexico plant will be 1.7 million square feet and will produce both Mack and Volvo trucks.

“It will be a complete conventional vehicle assembly facility including cab body-in-white production and paint,” the company said in a release.

“Adding production in Mexico will deliver logistical efficiencies for supporting sales to the southwestern/western regions of the U.S., and to Mexico and Latin America. It also provides a mature supply and production ecosystem that will complement the U.S. system and increase the resilience and flexibility of the Group’s North American industrial footprint.”