BRATISLAVA, Slovakia – Sweden luxury vehicle inventor Volvo The country’s economy minister said that autos plans to build a new factory in Europe in eastern Slovakia.
Economy Minister Richard Sulik said Volvo’s third plant in Europe will be located in Kosice, Slovakia’s second largest city. Volvo will receive about 20% of the 1.2 billion euros ($1.25 billion) needed for the project in the form of support from the Slovak government.
The factory is expected to produce about 250,000 Electric Car a year and create about 3,300 jobs. Construction is expected to begin next year and start production in 2026.
German VolkswagenFrench PSA Peugeot Citroen, South Korea That Motors Corp. and UK-based Jaguar Land Rover already has main factories in Slovakia, a Central European country with 5.5 million inhabitants.
Volvo’s factory will be its fifth and will strengthen the country’s position as the largest car manufacturer per capita in the world, with the central European country at 5.4 million produce more than 1 million cars by 2021.
As for Volvo Cars, this will be the company’s third plant in Europe and will only produce electric vehicles, in line with the company’s ambition to produce exclusively electric vehicles by the end of the decade.
The European Union aims to phase out the sale of new fossil fuel-powered cars by 2035.
“The expansion in Europe, our largest sales region, is critical to our transition to electrification and continued growth,” Chief Executive Officer Jim Rowan said in a statement. declare.
The area targeted for the factory has long had a high unemployment rate compared to the western part of the country.
Economy Minister Richard Sulik said: “I am delighted that Slovakia has succeeded in competing for this huge investment that will bring development and many jobs to the east of Slovakia.”
Volvo Cars’ other European plants are in Belgium and Sweden.
The automaker’s production last year rose 5.6 percent to nearly 700,000 cars, of which 27 percent were all-electric or plug-in vehicles. crossbred.
Majority Chinese owned company Geely Holding, was listed on Nasdaq Stockholm last October.
Includes material from Reuters.
