The Geely car company in China, which is the new owner of the Volvo brand, has been given permission to locate a Volvo production base in Jiading Industrial Zone in Shanghai.

The factory is expected to be in operation in the second half of 2012, when it will be utilized for the production of Volvo C30 and Volvo V70 luxury car models.

The Volvo base will cover an area of 800,000 square meters and have a total annual production capacity of 300,000 vehicles.

It has also been reported that Volvo’s China headquarters, which will include research and development facilities, will be placed in the Jiading Industrial Zone.

A Volvo Museum will also be built there.