Volvo Cars will build a $500 million plant in South Carolina that will eventually employ up to 4,000 people.
The company announced Monday morning that the plant about 30 miles from the Port of Charleston is expected to make about 100,000 vehicles a year, initially.
The company says it expects to employ about 2,000 people at the Berkeley County plant over the next decade. That could grow to 4,000 workers eventually.
South Carolina Gov. Nikki Haley planned a news conference later Monday morning to formally announce Volvo's decision.
South Carolina and Georgia had been the two finalists for the plant and Georgia officials said last week that Volvo had decided against building near Savannah.
Construction is expected to begin in the fall. The first vehicles are expected to be ready in 2018.
North Carolina had been in the running for the plant. Governor Pat McCrory has been urging lawmakers to supply more money for the state's incentives program for him to be able to recruit businesses. The House has passed what he wants, but the Senate passed a much smaller measure. In the meantime, the state has seen Volvo head to South Carolina and Mercedes head to Georgia. Land Rover is reportedly considering North Carolina for a plant of their own.
