BILLIONS INVESTED: Volvo's first US factory will be built in South Carolina. The new factory is expected to produce 100 000 vehicles each year from 2018. Image: Volvo.
COLUMBIA, South Carolina - Volvo will build its first factory in the US - a R5.8-billion investment in South Carolina that will eventually employ as many as 4000 people.
The factory is initially expected to build about 100 000 vehicles a year from 2018, according to Volvo. It expects to employ about 2000 people at the Berkeley County factory, about 48km from the port of Charleston, over the next decade.
That could eventually grow to 4000.
CONSTRUCTION TO BEGIN IN 2015
The state plans to borrow about R1.7-billion to build the site and a new freeway to service it, state commerce Secretary Bobby Hitt said at a news conference at the Governor's Mansion.
South Carolina beat four other states in attracting the factory.
Construction is expected to start towards the end of 2015 and its production lines will serve the US and export markets.
Lex Kerssemakers, president and CEO of Volvo USA, said: "We came to South Carolina to be close to the sea. We will export those cars."
Volvo will be the second European automaker to locate in South Carolina. BMW built a factory in Greer in 1994.