“This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets.
Håkan Samuelsson, president and chief executive, Volvo Cars
Volvo has chosen Berkeley County, near Charleston, as the location of its new factory.
The new facility will have initial annual production of around 100,000.
Volvo Cars estimates that the plant will employ up to 4,000 people in the longer term. It has been estimated that the multiplier effect of a car plant means that it can create between 5 and 7 new jobs for every job at a plant.
It will make latest generation Volvo models for sale in the United States and for export. Construction will begin in early autumn, with the first vehicles expected to roll off the assembly line in 2018.
Once completed, Volvo will be able to manufacture cars on three continents, underscoring its position as a global carmaker. It already operates two plants in Europe and two in China.
• South Carolina officials promised a $125 million incentive package.
• 2,000 jobs will be created over the next decade, and up to 4,000 by 2030.
• The plant will be built at the Camp Hall Industrial Campus along U.S. 26 near Ridgeville.
• The plant is within 30 miles of the Port of Charleston.
• A 575-acre first phase would include a 2,000-worker assembly plant, administrative offices and a welcome center.
The new US plant forms part of an ambitious medium term expansion plan to double global sales, boost market share and lift profitability.
“This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets,” said Håkan Samuelsson, president and chief executive.
An important factor in Volvo Cars’ renaissance will be the U.S. market. Volvo has been doing business in the U.S. since 1955 and has a medium term target to sell at least 100,000 cars a year.
“Building a plant in the U.S. is a reflection of Volvo Cars’ commitment to the U.S. and the key role the U.S. plays in our growth objectives,” said Lex Kerssemakers, senior vice president Americas.
The decision to choose Berkeley County was taken as a result of its easy access to international ports and infrastructure, a well-trained labor force, attractive investment environment and experience in the high tech manufacturing sector.
“The U.S. remains one of the most dynamic economies in the world and Volvo Cars believes strongly in the benefits of investing and contributing to the markets in which it seeks to sell cars,” Kerssemakers said.
Nikki Haley, Governor of South Carolina, said: “By bringing $500 million in new investment and 4,000 jobs to this community, Volvo’s presence and commitment to Berkeley County and the state will be felt for decades to come. We are proud to have this global leader in car manufacturing join and strengthen South Carolina’s automotive industry.”
Volvo is based in Sweden and owned by Chinese automaker Geely Holding since 2010.