Swedish automaker Volvo plans to invest $520m to expand its auto assembly plant capacity near Ridgeville, South Carolina, which is still under construction.
The expansion is expected to help the company to produce XC90 SUV beginning in 2021 to meet the growing demand.
The announcement to build second manufacturing line brings Volvo's total investment in its US manufacturing operations to over $1.1bn.
Upon completion of both manufacturing lines, the company will be able to produce approximately 150,000 vehicles per year.
Additionally, Volvo will construct an 88,000 sq ft office to house up to 300 employees from R&D, purchasing, quality as well as its Southern regional sales team.
Volvo Cars president and Håkan Samuelsson said: “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.”