According to Swedish media reports, China’s Geely’s Swedish Volvo Car Corporation is considering setting up its first Chinese production plant in Jiading, Shanghai.

According to reports, the total investment of Volvo Shanghai Jiading Plant is approximately 2.5 billion Swedish kronor (equivalent to approximately US$2.576 billion), and it will employ approximately 2,000 employees. The initial annual production capacity of the car is 120,000 vehicles. The Board of Directors of Volvo Cars will meet on the above matters on February 22 to make a final decision.

Geely Chairman Li Shufu had previously stated that he plans to build three new Volvo plants in China, namely Jiading in Shanghai, Daqing in Heilongjiang, and Chengdu in Sichuan. Volvo CEO Jacob also said that Volvo's new plant site will be announced in February and March.

It is understood that due to its close proximity to the sales market, complete infrastructure and parts suppliers, Shanghai Jiading is currently one of the hottest locations for new plants. At the same time, Volvo China has already settled here.