Volvo Hebei Zhangjiakou Engine Plant Will Expand to Vehicles

The final settlement of the Volvo engine in Zhangjiakou, Hebei, is a foregone conclusion. On July 16, 2012, the reporter found through multiple investigations that the Volvo engine project had been secretly advanced for one year. According to local government documents, at present, the construction of the engine project plant has been started. According to the information released by the website of the Zhangjiakou City Development and Reform Commission, the three parties of the municipal government, Geely Group and Tongtai Group signed a cooperation agreement in April last year. The contents of the agreement show that this area may also become a Volvo vehicle production base. At this point, Volvo's localization layout has been relatively complete.

Settled in a low profile

Establishing an engine plant in China is an important part of Volvo's medium-term development plan. However, unlike establishing the two major production bases in Chengdu and Daqing earlier, Volvo has not disclosed the location of the engine plant. Today, it is finally reported that the engine plant will be located in Zhangjiakou. The reporter thus conducted multiple verifications.

“Volvo really does exist, and now it is taking a procedure, but I don’t know the specifics. The Bureau of Industry and Information Industry is quite clear in this regard.” On July 16, the reporter called the Zhangjiakou City Development and Reform Commission, and someone in the department told reporters. Confirmed that the recently rumored Volvo engine project was settled in Zhangjiakou.

Later, the reporter also called the Zhangjiakou City Industrial and Information Bureau. A person in the department said, “I can definitely say something is true, but I can't say any details.” Actually, like the reporter’s interview, the Zhangjiakou City Government and Volvo are in the engine. The project has always maintained a discreet and low-key style.

On the Internet, many netizens stated that as early as May last year, Volvo held a ground-breaking ceremony in Zhangjiakou, but the relevant parties were not willing to open it on a large scale. The reporter saw that a number of forums did have relevant content, but all were deleted.

On July 16th, the reporter reviewed the announcement made by the Zhangjiakou City Development and Reform Commission website over the past year about the “Progress of City and County Leaders in the Construction of Key Joint-Purpose Projects” and found that the engine project reached a cooperation agreement as early as April 2011. It has been advancing quietly for more than a year to date.

According to the above-mentioned announcement, at the beginning of April last year, the Zhangjiakou City Government, Geely Group and Tongtai Group have formally signed a cooperation agreement. In the list of key government projects promoted by the local government in July last year, it was mentioned that "The Volvo Engine Plant held a groundbreaking ceremony for its start." Up to now, the construction of the plant of the engine project has been fully started, the lifting of the factory grid structure has been completed, the roof has been completed 3/4, and the interior of the room has hardened. The local government even stated that it is striving to achieve the completion of the main project this year.

It is reported that the plant will produce 1.3T, VEP, 15P and other engines after it is put into operation. The displacement will be from 1.3L to 2.5L. The annual production capacity will reach 600,000 units in the future. The domestically produced engine will not only be used for domestic model matching, but also Export to the global market. However, the reporter saw in the above-mentioned announcement that the annual production capacity of Volvo Engine Works was 325,000 units. Which is the correct number of production capacity, Volvo has not officially released.

Vehicle project or settled in Zhangjiakou

Volvo Engine Factory settled in Zhangjiakou, people can not help but guess, Volvo vehicle domestic projects are likely to also settled in Zhangjiakou. However, on this rumors, Volvo has denied. Volvo has two production bases in Chengdu and Daqing.

“This news is not true. We did not plan to complete the vehicle in Zhangjiakou.” In response to this question, Mr. Ning Shuyong, Vice President of Public Affairs of Volvo China, publicly stated in an interview with the media. However, although Volvo said that there is currently no plan to produce a complete vehicle in Zhangjiakou, in fact, the contents of the above announcement show that the contract signed at the time included a vehicle plan.

According to information released on the website of the Zhangjiakou City Development and Reform Commission, at the beginning of April last year, the cooperation agreement signed by the municipal government, Geely Group and Tongtai Group explicitly included the “Implementation Plan for the Construction of Zhangjiakou Automobile Production Base” and “Volvo Cars (China) Zhangjiakou. There are six cooperation agreements including the engine base project cooperation framework agreement and the cooperation framework agreement of Volvo Cars (China) Zhangjiakou Proving Ground Project. Obviously, the cooperation between the two parties does not stop at the engine plant.

Zhangjiakou may be the reason for Volvo's third vehicle base, and it also lies in Volvo’s vast new vehicle plan. Douglas Speke, senior vice president of the Volvo Group, previously stated that from 2012 to 2018, Volvo will launch 10 new vehicles to the Chinese market to maintain market growth. There are rumors that the new plant project in Zhangjiakou Volvo will include the production of four complete vehicles.

“When things start, there are always many gossips. The only thing I can tell you is that our vehicle projects in Chengdu and Daqing are certain. Zhangjiakou is one of the choices for our engine plan and we are still waiting. Government approval.” On July 17, Han Bowen, director of product communications for Volvo Car China, told reporters in an email.

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