The Volvo Group is expanding its 1,340-worker Hagerstown plant and plans to add more than 100 jobs there, the company announced Friday.

Volvo, which makes heavy-duty engines and transmissions at the facility, anticipates a $30 million expansion. The company is upgrading the plant, centralizing some warehousing efforts and bringing back work — machining and assembly operations for Mack heavy-duty drive axles — that was handled in Hagerstown years ago but had been moved to a third-party supplier in Pennsylvania.

In a separate announcement, the governor's office and the Washington County Board of Commissioners said the additional jobs could reach 140.

Volvo is receiving a $4 million "conditional" loan from the Maryland Department of Business and Economic Development — meaning the money doesn't have to be paid back if the company meets the job and investment targets — and a $200,000 conditional loan from Washington County. The state said Volvo also will be eligible for state and local tax credits and training programs.

Volvo said it has invested more than $350 million in the plant since acquiring Mack Trucks in 2001. Plant workers made more than 45,000 engines and 21,000 transmissions last year.

jhopkins@baltsun.com

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