Volvo Cars to build third factory in Europe

© Reuters. FILE PHOTO: A Volvo S60 is displayed during the inauguration of Volvo Cars first U.S. production plant in Ridgeville, South Carolina, U.S., June 20, 2018. REUTERS/Randall Hill

BERLIN (Reuters) – Volvo Cars wants to build a third factory in Europe by the middle of the decade, its CFO Bjorn Annwall told German paper Automobilwoche on Sunday, in order to meet its production target of 1.2 million vehicles per year.

The Gothenburg-based company, which became Sweden’s second largest listing yet after its IPO in late October with a valuation of $18 billion, currently has two factories in Europe – one in Sweden and the other in Belgium.

“We need both our plants in Europe… but we need more. That’s why we want to build a third plant,” Annwall said to Automobilwoche. Where that plant will be located is not yet clear, he said.

Volvo Cars was not immediately available for comment.

The carmaker, which is majority owned by China’s Geely Holding, currently produces around 800,000 cars annually, Annwall said. It plans to produce purely electric cars by 2030.

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