The Volvo Cars Group is to open a new manufacturing site in the UK.
The news comes just days after it was announced that a new £25m factory will open in the north-east of England.
Volvo’s chief executive, Anders Hedberg, said the UK could be “one of the fastest growing areas of the UK”.
Mr Hedberg said: “We are committed to creating an even greater future for Volvo Cars in the North East of England and beyond.”
The site is located in a redeveloped industrial park and is expected to generate around 1,000 jobs.
It will be staffed by engineers and mechanics.
The site will have “a significant impact on the local economy and local jobs, which we are very excited about” said Mr Hedberg.
“We are confident that this site will create a significant impact for the local area, which is why we are committed in the coming years to supporting local businesses.”
The Volvo Cars group will also invest £4m to help build the factory in an effort to “deliver a future where there are more jobs in the region”.
Volvo has been in operation in the United Kingdom since the 1970s.
The UK is the second-largest auto market after China, with more than 1,400 cars sold there.