Volvo has decided to invest $500 million in a South Carolina manufacturing plant, its first production facility located in the U.S., to better compete in the North American market.
Construction will start later this year on the Ridgeville, Berkeley County facility and vehicle production is expected to begin by 2018, according to Bloomberg.
The Swedish automaker also confirmed that the plant will eventually have the capacity to produce 100,000 vehicles every year thanks to 2,000-4,000 employees.
"This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets," said Hakan Samuelsson, president and chief executive of Volvo Car Corporation, according to Volvo.
The plant is part of an aggressive plan laid out by Samuelsson, who wants annual global sales to reach 800,000 vehicles by 2020, according to Bloomberg.
The move isn't surprising considering rival automakers like Daimler and BMW already announced new production capacity in the South Carolina area. Both companies already sell three times as many vehicles as Volvo thanks in part to its U.S. production plants.
"Volvo's presence and commitment to the community will be felt for decades to come," said Nikki Haley, Governor of South Carolina, in a press statement. "We are proud to have this global leader in car manufacturing join and strengthen South Carolina's automotive industry."
Since Zhejiang Geely Holding Group took over in 2010, Volvo has added two new plants in China to go along with its older European facilities, according to Reuters.
Mexico and Georgia were also on Volvo's list before the company decided on the Berkeley County spot.
Construction on the plant is expected to start sometime this September.
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