Volvo to create 3,300 jobs at $1.25 billion EV plant in Slovakia

An extended publicity image exhibits vehicles of Swedish vehicle producer Volvo displayed in entrance of a showroom of Stierli Vehicle AG firm in St. Erhard, Switzerland April 11, 2019. REUTERS/Arnd Wiegmann/File Photograph

OSLO, July 1 (Reuters) – Volvo Automobile Group (VOLCARb.ST) will make investments 1.2 billion euros ($1.25 billion) to construct an electrical automobile (EV) plant in Slovakia, the Sweden-based automaker mentioned on Friday.

The location, Slovakia’s fifth, will bolster its standing as the most important automotive producer per capita on this planet, with the central European nation of 5.4 million producing greater than 1 million vehicles in 2021.

For Volvo Vehicles, it is going to be its third plant in Europe and can construct EVs solely, in step with the corporate’s ambition to provide EVs solely by the top of this decade.

The European Union goals to section out new fossil gas automotive gross sales by 2035. learn extra

“Growth in Europe, our largest gross sales area, is essential to our shift to electrification and continued progress,” Chief Govt Jim Rowan mentioned in an announcement.

The ability within the Kosice area in japanese Slovakia is designed to provide as much as 250,000 vehicles per 12 months. The plans additionally enable for future enlargement, the corporate mentioned in an announcement.

“Volvo Vehicles has an ambition to maneuver in direction of annual gross sales of 1.2 million vehicles by mid-decade, which it goals to satisfy with a worldwide manufacturing footprint spanning Europe, america and Asia,” it mentioned.

The funding will create 3,300 jobs across the metropolis of Kosice, 100 kilometres (62 miles) from the border with Ukraine.

The world has lengthy had excessive unemployment in contrast with the western a part of the nation.

“I’m more than happy that Slovakia succeeded within the competitors for this mega funding that may deliver growth and many roles to the east of Slovakia,” Financial system Minister Richard Sulik mentioned in an announcement.

Volvo Vehicles’ different European crops are in Belgium and Sweden.

Its output final 12 months rose by 5.6% to virtually 700,000 cars, of which 27% had been both absolutely electrical or plug-in hybrids.

The corporate, which is majority-owned by China’s Geely Holding, listed on Nasdaq Stockholm final October.

($1 = 0.9573 euros)

Reporting by Terje Solsvik and Robert Muller, enhancing by Gwladys Fouche, Jason Neely and Barbara Lewis

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