Volvo's C30 and V70 will be manufactured in China from year 2012.

• Volvo enters a new era under Chinese flag
• Geely chairman: 'Volvo is still Volvo'

China's Geely, that completed the acquisition of Volvo Car Corporation just two weeks ago, plans to build manufacturing facilities to build Volvo cars in Shanghai.

Chinese media said Friday that Geely has got approval from the National Development and Reform Commission (NDRC) to set up the production facility.

The new facility, that will be located in the Jiading Industrial Zone, will have an annual capacity of 300,000 vehicles. Volvo's C30 and V70 luxury car models will be manufactured here beginning at the end of 2012.

Volvo's China headquarters, research and development center as well sales and sourcing center will also move to in Jiading, reported Oriental Morning Post and People's Daily. A Volvo Museum will also be built in the area.

After a lost decade as a Ford brand, Sweden's Volvo has entered a new era under the ownership of China's Geely, turning its sights to the world's largest car market.

On August 2, as Geely Holding Group completed the acquisition of Volvo Car Corporation, the Chinese firm said that the Swedish brand will keep its headquarters and plants in Sweden and Belgium, and its management will retain its autonomy under a board headed by Geely Group chairman Li Shufu.

"After the takeover, Geely remains Geely and Volvo is still Volvo. The relationship between the two companies is brotherhood and not a parent-and-child relationship," Li was quoted as saying.