UK-based startup Arrival introduced Tuesday that it had chosen a web site in South Carolina for a “microfactory” to construct electrical buses.

The $46 million manufacturing unit shall be positioned in Rock Hill, South Carolina, and can create 240 jobs within the space, an Arrival press launch stated.

Arrival makes use of the time period “microfactory” to explain small, decentralized amenities the place it plans to construct electrical autos. The startup believes these smaller factories enable it to tailor manufacturing to particular regional wants, whereas boosting native economies via tax income and use of native labor swimming pools and provide chains.

Use of a localized provide chain may even decrease the general environmental influence of auto manufacturing, Arrival stated.

No particular causes behind the choice to find in South Carolina have been disclosed, however the present state authorities has been pleasant to automakers. Volvo and Mercedes-Benz lately opened factories close to Charleston—the latter to construct vans.

Arrival has proven its personal stylish electric delivery vans, however the South Carolina manufacturing unit will initially construct buses, the corporate stated. Arrival unveiled its electrical bus earlier this 12 months, saying on the time that it will be priced the identical as a comparable diesel bus. Manufacturing on the South Carolina manufacturing unit is scheduled to begin within the fourth quarter of 2021.

Arrival electric delivery van for UPS

Arrival electrical supply van for UPS

In February, Arrival additionally introduced a deal to produce 10,000 electrical supply vans to UPS. Hyundai and Kia additionally introduced a joint $110 million investment within the firm in January.

Arrival shall be vying for a number of the similar enterprise gained by Rivian, with its lately revealed vans designed for Amazon. Rivian is contracted to construct 100,000 of the vans for the web retail big by 2030 and, not like Arrival, it additionally has plans for client autos. The Rivian R1T pickup truck and R1S SUV are scheduled to begin manufacturing in 2021.