Volvo Cars broke ground Friday on its first American factory, a $500 million plant in Berkeley County that will build the company’s next-generation S60 sedan.

Lex Kerssemakers, president and CEO of Volvo Cars of North America, Gov. Nikki Haley and other public officials took part in the ceremony, the company said. Construction has now begun on a factory that will be able to build up to 100,000 cars a year.

“Today’s groundbreaking proves that Volvo Cars follows promises with action,” Kerssemakers said in a company release. “Volvo is moving quickly to expand its presence in the United States with new cars, new engines and now, a new factory.”

The Swedish automaker announced in May that it had chosen the site, about 30 miles northwest of Charleston, for its first plant in North America, The Associated Press reported.

The S60 comes first

The plant will be the global production home of the all-new S60, Volvo said. The sedan is being developed at Volvo Car Group’s headquarters in Gothenburg, Sweden, according to the company.

Volvo said S60s built in South Carolina will be exported around the world through the Port of Charleston, along with another model that has not yet been chosen. The first South Carolina-built Volvos are expected to roll off the assembly line in late 2018.

Volvo estimates the factory will employ up to 2,000 people over the next decade and up to 4,000 in the longer term. An economic impact analysis by Frank Hefner of the College of Charleston estimates that 2,000 direct jobs would lead to more than 8,000 jobs in all, and that the plant would contribute about $4.8 billion a year in total economic output, the company said.

The first phase of the site will include a 2,000-worker assembly plant, offices and a welcome center, The Post and Courier reported in July. Depending on market conditions, a second assembly plant employing another 2,000 people could follow, according to the newspaper.

The groundbreaking comes as Volvo’s U.S. sales recover. The company said its U.S. sales rose by double-digit percentages over the last two months, with strong demand for the new XC90 seven-seat SUV that went on sale this summer. Volvo is seeking to double its sales in North America, the AP reported.

Getting the site ready

The state is borrowing $123 million to pay for site preparation and an interchange on Interstate 26 for the plant, the AP reported.

Preparations took shape over the summer. In July, state-owned utility Santee Cooper bought the 6,825-acre Camp Hall site from MWV Camp Hall LLC, part of MeadWestvaco Corp., now known as WestRock Co., for slightly more than $34.1 million, The Post and Courier reported. Santee Cooper’s economic development arm helped the Commerce Department put together the $200 million-plus incentive package that lured Volvo, the newspaper reported.

Berkeley County will reimburse Santee Cooper $5 million for the parcel Volvo will occupy, a utility spokeswoman told the newspaper. The rest of the property will be marketed to other manufacturers and suppliers.

Days later, Berkeley County Council approved a $69.3 million contract with Landmark Construction Co. to clear and grade the 726-acre Volvo site and install storm drainage and erosion control, The Post and Courier reported. The county also signed a $4.27 million contract with Thomas & Hutton to oversee engineering of the first phase.

Roads, rail and water

That first phase includes road improvements to be paid for by the state, according to The Post and Courier: new turn lanes, signals and restriping at I-26 Exit 187, which leads to S.C. Highway 27; widening Highway 27 and Highway 176 to three lanes near the site; and a new road through the middle of Camp Hall to a new I-26 interchange at mile marker 189.

That interchange won’t be finished until 2019, a year after the plant opens. A Volvo spokesman told the newspaper the company knew about that timeline before signing its agreement and planned for it in the construction schedule.

A rail spur could also connect the property to Ridgeville, where a Norfolk Southern line carries BMWs made in the Upstate to the Port of Charleston, the newspaper reported in July. An alternative connection to CSX was also under consideration.

A 14-inch water main will be built from Harleyville to the site, along with a 750,000-gallon tank on the Camp Hall property to serve the automaker, the newspaper reported. The Army Corps of Engineers, the county and the Commerce Department will pay for the $18 million in water projects.