Hyderabad, May 7 (PTI): German auto major Volkswagen has decided to set up its manufacturing plant at the port city of Visakhapatnam in Andhra Pradesh.

Major industries minister B. Satyanarayana said a team of officials from the European car major would visit the state later this month to discuss matters relating to the location of the car plant and its ancillary units.

?Volkswagen officials have scotched speculation that their company is looking at other states to set up the plant. Initially, Visakhapatnam was to be an assembling unit with parts coming from their manufacturing facilities around the world. Now it has been decided that it is going to be a full-fledged manufacturing and ancillary unit,? Satyanarayana said on his return from Germany where he visited the Volkswagen headquarters.