AB Volvo reportedly plans to invest $7.2 million to build a new plant in South Africa.
The move will allow the heavy-truck maker to close its Botswana facility in an effort to save on shipping costs and shave delivery times, Reuters reports. Volvo currently assembles 1,000 kits annually in Botswana and sends most of them to South Africa, which is the continent’s healthiest economy.
Volvo leaves Botswana following five years of operation. Some 82 jobs will be shed.
Assembly operations will be moved to Durban, with capacity bumped to 1,600 units annually starting in December. The plant will create 82 jobs and also will build the chassis for Volvo’s B7R bus beginning next year at an annual rate of 60-100 units.
Volvo officials indicate the truck maker may also look at producing Mack Trucks Inc. commercial vehicles in Durban if the cost structure allows. Mack is a Volvo subsidiary.