Volvo owner Geely has said that it wants to double the brands global capacity

Volvo owner Geely has said that it wants to double the brand's global capacity

A new Volvo plant will probably be established in the southwest China city of Chengdu and is expected to be approved by December, Shen Hui, Volvo's senior vice president responsible for operations in China said at the 11th Western China International Fair in Chengdu.

Volvo was bought by Geely Holdings Group earlier this year for US$1.2bn and Geely said that it wants to double Volvo's global capacity. Geely has a nearly-completed SUV plant in Chengdu which could be used to build Volvo crossover vehicles. The site's current production line is capable of building 150,000 vehicles a year and has room to add a second assembly line.

"The new plant will be set up after Chinese authorities approve our application and the Volvo board of directors OKs the move in December," said Shen. 

"Chengdu has sound government policy support, industry foundation, infrastructure, human resources, and suppliers. And I see a promising market in western China," said Shen.

Beijing has previously called for more efforts to develop the country's western regions and raise peoples' standards of living.