Swedish carmaker Volvo, owned by Zhejiang Geely, has finally decided to set up a manufacturing facility in Chengdu, capital of Sichuan province, according to Reuters.

Since Volvo was acquired by the Chinese company in 2010, it has been courted by various cities including Shanghai and Daqing.

A contact told the news agency that Volvo has decided to make cars in Chengdu and set up its China headquarters and R&D centre in Shanghai. Geely already operates its own car plant in Longquan economic development zone on the outskirts of Chengdu.