(Ecofin Agency) - The Volvo Group will build a truck assembly plant in Mombasa, Kenya. The project which is estimated to 2.5 billion Kenyan shillings (approximately $24 million) will help the Swedish car manufacturer strengthen its presence in the East African market.

It will be carried out in partnership with NECST Motors car dealership which is currently the exclusive importer of Volvo Trucks in East Africa. Through this project, Volvo aims to win a 20 % market share in the region, within three to five years.

"There is a significant potential for the premium truck business as regional economies grow, infrastructure investments expand and the business environment remains investment friendly" said Claes Nilsson, president of Vovlo Trucks.

Furthermore, according to Volvo Trucks, the project should be launched in the first quarter of 2018 in Kenya, with a production capacity of 500 units per year.

With the new plant, Volvo will thus have three assembly plants across the continent, including those of South Africa and Morocco.

B.K