Volvo Cars to receive financial support for its Ghent plant

July 15 (Reuters) - Volvo Cars has signed a memorandum of understanding (MoU) with Belgium's federal government and the Flanders regional government to support the long-term competitiveness of its Ghent plant, the Swedish carmaker said on Wednesday.

• The parties agreed to "work towards support measures" that include a package of up to 119 million euros ($136 million) for the plant.

• With this, Volvo Cars can pursue strategic investments to further develop the Ghent plant as a key manufacturing site.

• In addition to the continued building of Volvo's cars, this could also create opportunities to use Volvo Car Ghent for contract assembly of cars of other brands.

($1 = 0.8752 euros)

(Reporting by Elviira Luoma, editing by Terje Solsvik)