STOCKHOLM, Aug 23 (Reuters) - Sweden's AB Volvo

has selected Monterrey in northern Mexico as the site

for its planned North American heavy-duty truck factory, it said

on Friday.

The plant, plans for which Volvo announced in April, is due

to supply the Volvo Trucks and Mack Trucks divisions in the

United States and Canada, and Mack Trucks in Mexico and Latin

America.

"Monterrey provides significant logistical efficiencies for

supporting sales to the southwestern and western regions of the

U.S., and to Mexico and Latin America," the truck maker said in

a statement.

The company, which has said growth in North America is a

strategic priority, expects the plant to start operations in

2026.