Swedish automaker Volvo Cars has chosen South Carolina for its first American plant that would be built at an investment of $500m with an initial annual installed capacity of 100,000 vehicles.
Banking on the US' potential for housing high technology manufacturing units and aiming to boost South Carolina's economy, the firm has decided to set up the factory in Berkeley County in vicinity of Charleston.
Berkeley County is bestowed with a convenient access to international ports and infrastructure and offers a well-trained labor force, the company said.
While around 4,000 people are expected to find long-term employment, the ancillary sector is likely to generate five to seven jobs an employee.
South Carolina governor Nikki Haley said: "By bringing $500m 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."
In keeping with its mission to achieve a two-fold rise in global sales, increase market share and profitability, the facility will sell latest Volvo models in the home as well as export markets.
Volvo will now have manufacturing presence on three continents as it already has two plants each in Europe and China.
Volvo Cars president and CEO Hakan Samuelsson said: "This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets."
Construction will begin in early autumn 2015, with the first vehicles expected to roll out from the facility by 2018.
Image: The Volvo unit in South Carolina will have an initial production capacity of around 100,000 cars a year. Photo: courtesy of Volvo.
