China approves Volvo plant in Jiading

China's National Development and Reform Commission (NDRC), the country's top economic planner, has approved Geely's plans to locate a Volvo production base in Jiading Industrial Zone in Shanghai, reported today's Oriental Morning Post.

The production base is expected to go online in the second half of 2012, according to the report.

Jiading District Government published an article on its Web site that the base, which will be used for the production of Volvo C30 and Volvo V70 luxury car models, will cover an area of 800,000 square meters and have a total annual production capacity of 300,000 units.

In addition, Volvo China headquarters, a research and development center and its procurement center will also settle in Jiading Industrial Zone, covering an area of 200,000 square meters. A Volvo Museum will also be built there.

On Aug. 2, Geely Holding Group completed acquisition of Volvo Car Corporation. The selection of a final location for Volvo's China plant has attracted great attention. The public had assumed Jiading, Chengdu and Daqing would be possible choices.

This year in February, Jiading Industrial Zone and Shanghai Jiading District State-owned Assets Management Co., Ltd. jointly established Shanghai Jiaerwo Investment Co. Jiaerwo signed an agreement with Geely, under which Jiaerwo gave Geely 1 billion yuan to acquire Volvo and is responsible for follow-up investment, such as plant construction.

By Huang Beibei, People's Daily Online