Volvo has announced plans to build an all-new assembly plant outside of Kosice, Slovakia.
Set to become Volvo’s third plant in Europe, the facility will cost around €1.2 ($1.25 / £1.03) billion and construction is slated to begin next year. If everything goes according to plan, equipment and production lines will be installed in 2024 with series production beginning in 2026.
Volvo didn’t say much about the plant, but it will be a “state-of-the-art” facility that is climate neutral and exclusively tasked with building electric vehicles. The automaker went on to say the Kosice facility will complement their existing European plants in Ghent, Belgium as well as Torslanda, Sweden.
The facility will be able to build up to 250,000 vehicles annually and is slated to create “several thousand new jobs.” Volvo is also looking to the future as they noted the site allows for further expansion.
In a statement, Volvo CEO Jim Rowan said “Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.”
Volvo added they’re aiming to increase annual sales to 1.2 million units by mid-decade and said the Kosice plant is ideally located as Slovakia has a well-established automotive supply chain thanks to four other car plants. The automaker also cited “good logistical and transport links” as well as government incentives, which were a “key factor in the decision to locate the plant in Kosice.” Speaking of the latter, government funding is expected to cover around 20% of the plant’s cost.