Volvo builds new EV manufacturing plant in Slovakia

MANILA: Volvo Cars is positioned to meet the ongoing customer demand for electric vehicles and to seize possible future growth with the recent announcement that it will build a third production facility in Europe.

The company's goal to produce only electric cars and achieve climate neutrality by 2040 will be supported by the new state-of-the-art facility. Volvo Cars also aims to keep expanding its global production capacity to meet its growth goals.

By choosing Slovakia as the location for its new facility, Volvo Cars creates a European manufacturing triangle that covers its largest sales region, complementing the Torslanda plant in Sweden and the Ghent plant in Belgium.

An estimated €1.2 billion was invested in the new plant. As the fifth auto plant in the country, it will be situated near Kosice, in the eastern region of Slovakia, where it will benefit from an established automotive supply chain.

Volvo Cars targets to reach annual sales of 1.2 million units by the middle of the decade, a goal it aims to achieve with a global manufacturing presence encompassing Europe, the US, and Asia.

In a statement, Volvo Cars Chief Executive Jim Rowan said, “We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose. Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.”

“I appreciate that Volvo Cars has decided to build its new plant in Slovakia,” Slovak Republic Prime Minister Eduard Heger stated. “The new Volvo Cars plant is important for us since it will improve the social and economic situation in the region and produce only electric cars, which provides the Slovak automotive industry with a competitive perspective in the new ecological era.”

For his part, Slovak Republic Minister of Economy Richard Sulik said, “Personally, I am very pleased that Slovakia has succeeded in the competition for this mega investment, which will bring development and many jobs in the eastern part of Slovakia, with lots of direct and indirect job opportunities.”

Construction of the Kosice plant will begin in 2023, and production lines and equipment will be installed in 2024. Series production of Volvo's next-generation all-electric models are expected to begin in 2026.

The factory will solely use climate-neutral energy in keeping with Volvo Cars' goal to establish climate-neutral production operations by 2025. It will also be designed to be a pioneer in sustainable and efficient premium electric vehicle production with an optimized layout and logistics flow, while Volvo aims for the highest global standards in energy and environmental efficiency.

Kosice has access to a strong supplier base as well as good logistical and transport links to the rest of Europe. The decision to establish the facility in Kosice was also heavily influenced by the incentives provided by the Slovak government.

The plant, which has an annual production capacity of 250,000, is expected to create thousands of new jobs in the area. Additionally, the site allows for future expansion.

“We look forward to welcoming new members to the Volvo Cars Kosice team and the global Volvo Cars family, as well as establishing new collaborations and partnerships in the region. It will be a modern workplace, in a state-of-the-art plant that centers on sustainability and safety,” Volvo Cars Chief Operating Officer Javier Varela stated.

The Kosice plant is Volvo's first new production facility in Europe in almost 60 years. The Ghent plant opened in 1965, one year after the Torslanda plant. Together, these facilities can produce 600,000 vehicles annually.

Photos from Volvo Cars

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