BRATISLAVA, Slovakia (AP) — Swedish luxury vehicle maker Volvo Cars plans to build a new European plant in eastern Slovakia, the country’s economy minister announced Friday.

Volvo’s third European plant will be located in Kosice, Slovakia’s second-largest city, Economy Minister Richard Sulik said. Volvo will receive about 20% of the 1.2 billion euros ($1.25 billion) needed for the project as support from the Slovak government.

The plant is expected to produce some 250,000 electric cars per year and create some 3,300 jobs. Construction is due to start next year and production to begin in 2026. Volvo has set itself the goal of manufacturing only electric cars by 2030.

German Volkswagen, French PSA Peugeot Citroën, South Korean Kia Motors Corp. and Britain’s Jaguar Land Rover already have major factories in Slovakia, a central European country of 5.5 million people.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.