Volvo-Daqing joint venture approved

On July 21, the State Council approved Volvo Asia-Pacific Manufacture Co, a joint venture in Daqing, Heilongjiang province.

The Daqing plant is expected to be completed this year and start production at the beginning of 2014.

The joint venture in Daqing plans to produce 80,000 vehicles in the first phase, with an investment of about 4.5 billion yuan. In the second phase, it intends to invest 20 billion yuan and reach 300,000 units in production. Daqing has set up a special office to promote the Volvo project.

In April, Volvo’s Chengdu plant was approved by the Ministry of Industry and Information Technology (MIIT).

Volvo Asia-Pacific has four affiliates, including plants in Chengdu and Daqing, an engine factory in Zhangjiakou and an R&D center in Jiading, Shanghai. Volvo (China) Sales Co is temporarily independent from the joint venture system.