Volvo has announced production of the next-generation XC90 will begin from 2021, where it will be built at the carmaker’s manufacturing plant in Charleston, South Carolina. The SUV will join the all-new S60, also set to be produced at the facility from 2018.

The Charleston facility is currently being upgraded as part of efforts to expand manufacturing operations in the United States, which will bring total investments to over US$1.1 billion. Volvo says this will help create up to 4,000 new jobs, of which 1,900 personnel will be recruited for a planned new office campus.

“The continued expansion of our plant in South Carolina is another significant commitment to the US market. The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the U.S. and globally,” said Håkan Samuelsson, president and chief executive of Volvo Cars.

According to the Swedish carmaker, the US is the largest single market for the XC90, hence the business logic behind the move. The decision to choose South Carolina as its first ever manufacturing plant in the US was its easy access to international ports and infrastructure, a well-trained labour force, an attractive investment environment and experience in the manufacturing sector.

The expanded Charleston plant will target a production capacity of 150,000 vehicles annually, with a considerable amount of XC90 volume being exported from the Port of Charleston. “We’re excited to add a second car to our first American factory and we continue to be impressed by the entrepreneurial spirit in South Carolina,” said Lex Kerssemakers, president and CEO of Volvo Car USA.

The announcement on further expansion in South Carolina is part of the company’s ‘build where you sell’ global manufacturing strategy. It currently operates two manufacturing plants in Europe, as well as two factories in China. A third Chinese plant is currently under construction.