Geely Picks Locations for Three Volvo Chinese Plants

Rumors regarding a potential Chinese Volvo plant that would open its doors after Geely completes the transaction have surfaced even before officials of the two companies shook hands and smiled in front of the cameras. Now that the final signature has been given, Geely is making the preparations for the future Chinese factory that would help Volvo expand activities in its parent company's domestic market.

However, Geely isn't planning a single factory for Volvo, but three, with each of them to be responsible for manufacturing certain products from Volvo's portfolio. According to a People's Daily report, Volvo will operate three facilities in China, in Shanghai's Jiading area, Daqing and Chengdu, with the first of them to also serve as the company's local headquarters.

The Jiading plant will build the C30 and the V70, while the SUV models will be assembled at the Chengdu site. The brand new S60 will be manufactured in Daqing, the source wrote.

Volvo hasn't yet confirmed the news, but Geely started preparing the sites soon after the deal was agreed. It was initially rumored that Geely wanted to build a new plant in Shanghai that would also serve as headquarters, and local officials even confirmed that there is a possibility to see a new Volvo building in the region.

"We have reached an agreement with Geely on the matter and will provide a series of favourable policies for producing Volvo cars," Yu Jianhua, deputy director of the Jiading Industrial Zone and Asset Management Committee told asiaone.com back in August.