Swedish vehicle and vehicle parts manufacturer Volvo Group is set to expand its powertrain manufacturing plant in Hagerstown, Washington County, Maryland, with an investment of $30m.
The company, one of the world's largest producers of heavy duty diesel engines, had acquired the Hagerstown plant from Mack Trucks in 2001. The plant manufactures burning heavy-duty diesel engines and advanced transmissions.
It produced more than 45,000 engines and 21,000 transmissions for Volvo Group brands in 2012.
Maryland Department of Business and Economic Development approved a $4m conditional loan for the company to assist with project costs. The loan is based on job retention and creation and capital investment. Washington County has also approved a $200,000 conditional loan under the same terms. The company is also eligible for a number of State and local tax credits and training programs.
The automotive giant expects to create 140 new full-time jobs and will retain 1,340 existing full-time jobs at this plant.
Maryland Governor Martin O'Malley said: "State and local officials have worked closely with Volvo over the years to retain these good paying jobs for Western Maryland."
Volvo Group vice president and plant manager Wade Watson said: "This is one more milestone along a trail of many that demonstrates the Volvo Group's commitment to this market and to our workforce."
The Volvo Group manufactures trucks, buses, construction equipment and marine and industrial engines. It currently has production facilities in 19 countries and sells its products in more than 190 markets.
