Flanders offers €119 million support package for Volvo Ghent

The Flemish government has offered up to €119 million in support to help secure the future of Volvo Cars’ factory in Ghent.

The package is designed to encourage Volvo to invest billions of euros in modernising the plant and to strengthen its position against other European factories, newspapers HLN and De Tijd report. The Ghent site employs around 6,500 people.

Under the proposal, €30 million could be used for energy-efficiency and sustainable manufacturing projects. Up to €80 million would support innovation over the next ten years, including battery technology and digitalisation. A further €9 million could be provided for staff training.

Flemish minister-president Matthias Diependaele said the support is not a “blank cheque” and will only be paid if Volvo makes the planned investments.

The move comes after Volvo CEO Håkan Samuelsson warned that operating costs at the Ghent factory are too high. The government hopes the financial support will help attract new investment and secure jobs.

The offer is seen as an important boost for the factory as Volvo prepares to open a new production site in Kosice, Slovakia, later this year. The company is expected to decide in the coming months which future vehicle models will be built at its European factories.

^{#FlandersNewsService | Volvo Cars Ghent © BELGA PHOTO NICOLAS MAETERLINCK}