Volvo Cars Increasing Investment in South Carolina
Volvo Cars today announced that it is investing an additional $520 million in its Berkeley County, South Carolina operations and creating 1,910 new jobs. This new commitment adds to the company’s initial 2015 announcement and brings the collective total to more than $1 billion in investment and 3,900 jobs, respectively.
“Today’s announcement not only underscores Volvo’s commitment to the United States, but also our commitment to South Carolina,” said Lex Kerssemakers, President and CEO of Volvo Cars of North America. “This now brings our total investment to more than $1 billion dollars and adds nearly 2,000 jobs.”
Under construction currently, Volvo Cars’ Berkeley County manufacturing plant will be the global production home of the company’s all-new S60 sedan, which is expected to roll off the assembly line next year. With this new investment, the company is planning to add an additional product line – the next generation XC90 – to its South Carolina operations in 2021.
More than just increased manufacturing capacity, this additional investment will also support the construction of new office operations on the company’s Berkeley County site. The 88,000-square-foot office facility will include up to 300 new workers and will serve as a training center and house research and development and operations management activities, as well as a southern regional sales office.
“In just the past two years, Volvo Cars has proven to be an exemplary South Carolina company that is committed to our state and to its community,” said South Carolina Governor Henry McMaster. “We couldn’t be prouder that such a tremendous company has decided to invest in our people further and create more jobs for hardworking, deserving South Carolinians that we know will produce results.”
Volvo Cars announced in May 2015 that its first ever manufacturing plant in the United States would be located just outside Charleston in South Carolina. The decision to choose South Carolina was taken as a result of its easy access to international ports and infrastructure, a well-trained labor force, an attractive investment environment and experience in the high tech manufacturing sector.
The business logic behind the decision to build the next generation XC90 in South Carolina is compelling. The U.S. is the largest single market for the XC90, although a considerable amount of XC90 volume will be exported from the Port of Charleston. Total U.S. production capacity at the plant will rise to 150,000 vehicles annually.
The XC90 has played an important role in Volvo Cars’ sales revival in the United States and around the globe. The widely acclaimed large SUV, launched in 2014, is the most awarded luxury SUV of the century and helped Volvo Cars recover its sales in the United States from a low of 56,000 units sold in 2014 to almost 83,000 units in 2016.
The further expansion in South Carolina allows Volvo Cars to take another step toward the company’s ‘build where you sell’ global manufacturing strategy. It currently operates two manufacturing plants in Europe, as well as two factories in China. A third Chinese plant is currently under construction.
In addition to expanding the manufacturing plant Volvo Cars will further develop its neighboring office campus at the Charleston site. A new office building will be constructed to house up to 300 staff from R&D, purchasing, quality as well as Volvo’s Southern regional sales team.
Next month, the S.C. Department of Commerce is planning to go before the Joint Bond Review Committee and the State Fiscal Accountability Authority to request $46 million in bonds to offset eligible items of infrastructure under the Economic Development Bond Act.
Firms interested in potential supplier opportunities with Volvo Cars’ Berkeley County facility should visit S.C. Commerce’s website and fill out the online supplier information form or contact VolvoCarsSC@SCcommerce.com with any questions.
For more information on Volvo Car USA, visit the company’s website
