Xinhua quoted Volvo Group executives said a new Volvo plant will probably be established in the southwest city of Chengdu.

Mr Shen Hui Volvo senior VP responsible for operations in China said "The new plant will be set up after Chinese authorities approve our application and the Volvo board of directors OKs the move in December."

He said he was very satisfied with Chengdu investment environment, human resources and relations between the auto enterprises and the local government.

Mr Shen said "Chengdu has sound government policy support, industry foundation, infrastructure, human resources and suppliers. And I see a promising market in western China."

President Mr Hu Jintao stressed, during a working meeting from October 17 to 18 in Beijing, the importance of developing the country west, saying it is a major task for the country to build a moderately prosperous society and is in the interests of people from all ethnic groups in the region.

He added that the government would make unswerving efforts to raise peoples' livelihoods in the western regions in the next decade, including creating more jobs and improving education, medical services and social security networks.

(Sourced from Xinhua)