May 22, 2014 10:25 AM, EDT

Volvo to Build Parts Distribution Center in Mississippi

Kristian Helgesen/Bloomberg News

Volvo Group said it is building a 1 million-square-foot parts distribution center in Byhalia, Mississippi, the Associated Press reported.

The facility will support the company’s Mack, Volvo and UD truck brands, as well as Volvo Construction Equipment and Volvo Penta. The plant in the Memphis, Tennessee, suburb is expected to employ about 250 people.

The Gothenburg, Sweden-based company said while the facility will primarily support North American customers, being part of the Memphis logistics hubs also puts it in position to export parts, AP reported.

Construction is expected to be completed by the end of this year.

Volvo Group includes Volvo Trucks, Mack Trucks and the Eicher, UD Trucks and Renault Trucks brands.