Swedish carmaker Volvo and Chinese auto company Geely have unveiled their jointly-owned plant in Taizhou. The plant will be operated by Volvo. It will be used for producing compact cars using the Compact Modular Architecture (CMA) platform.

Production in the new factory is likely to start in the current quarter. A Volvo insider said that the company is looking to turn China into a manufacturing and export hub. The insider added that this is the first time that the entire operation has been moved from Sweden to China. Volvo is also seeking to boost its industrial synergies with Geely.

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The new plant is the third assembly plant for Volvo in China. The company has plants in Chengdu and Daqing. However, the Taizhou plant will be the first one to produce both foreign and Chinese marques including 40-series model and the cars under newly introduced Lynk & Co. brand. China is fast becoming important for the Swedish car maker as it announced an increase in its quarterly revenue in the country.

The plant will employ Compact Modular Architecture for producing small cars. The platform was jointly developed by Volvo and Geely in Sweden. Cars produced in the plant will be used for both domestic consumption as well as for export. Volvo currently exports S60 cars from China to the United States.

The companies are also expected to unveil the upgraded versions of S90 sedan. The S90 Excellence will have its front passenger seat removed to create the 'Lounge Console.' Both upgraded versions will be built at the Volvo assembly plant located in Daqing, China.

Tagsvolvo, Geely, Chengdu