Volvo Cars has received Chinese government approval to build two assembly plants in the country, the China-owned carmaker said on Friday.
An assembly plant in Daqing, northeast China, was estimated to be fully operational in 2014. At full capacity it would be able to make about 80,000 cars a year, said Volvo spokesman Per-Ake Froberg.
An engine plant in Zhangjiakou was also approved. It is expected to begin later this year delivering engines to an assembly plant in Chengdu where serial production was planned to begin during the fourth quarter, he added.
Approval for the Chengdu plant, 1,600 kilometres west of Shanghai, was granted in June. The Chengdu plant's full capacity was estimated at 120,000 cars.
Full production was not envisaged for some years at the two car assembly plants.
China-based Zhejiang Geely Holding Group in 2010 took over ownership of the car maker from US automotive giant Ford.
The plants in Daqing and Zhangjiakou were to be operated as joint venture companies where Volvo Cars was initially to hold 30
per cent. The remaining stake was to be owned by other companies within Geely Holding Group. -Sapa-dpa