Volvo, majority owned by Zhejiang Geely Holding as well as the Chinese government, has announced that the company will expand its operations at a new facility in Daqing, China by producing vehicles based on the Scalable Product Architecture (SPA).

Volvo said that this move will make Daqing one of the most advanced car making facilities in China. Moreover, the Swedish automaker expects sales in China to surpass 80,000, making it Volvo's largest global market.

"We are pleased to announce that we are going to introduce SPA and a new sedan here. We are fully committed to the growth of our business in China, our second home market," said Håkan Samuelsson, Volvo Cars' President and Chief Executive.

The existing Daqing facility has around 700 employees and an intitial capacity of 80,000 vehicles. Volvo says the first SPA vehicle to be made in Daqing will be an all-new premium sedan which could most likely be the upcoming S90.