Volvo Cars: plant site in China not finalized

Volvo Cars, whose acquisition by Zhejiang Geely Holding Group Co. was completed this month, hasn't finalized the location of Volvo manufacturing facilities in China, the company said in a statement Friday.

The comment comes after a Shanghai district government said on its website Geely plans to build a Volvo production plant and other Volvo offices in Shanghai.

The plant, expected to start operations in 2012, will make the Volvo car models C30 and V70, the Jiading District government said in a statement dated Aug. 14 on its online portal. Geely also plans to build a Volvo China headquarters, research and development center and sales center at an industrial zone in the district, the statement said.

Construction is expected to start in March or April next year and be completed in the second half of 2012, it said.

A move to build a new assembly factory has been expected. As recently as earlier this month, Geely Chairman Li Shufu said the Hangzhou-based auto maker eventually would like to build a Volvo plant in China to meet demand for Volvo cars he expects to see boom in the world's biggest auto market.

Zhejiang Geely Holding Group is the parent company of Hong Kong-listed Geely Automobile Holdings Ltd. (0175.HK).