(Reuters) - Rivian Automotive ( RIVN ) named Javier Varela its chief operating officer on Friday, bolstering its ranks with the Volvo veteran as the electric-vehicle startup expands its production facility even as it grapples with a slowdown in demand.

Volvo said earlier this week that Varela would leave the Swedish truck maker after an eight-year stint that saw him rise to the role of deputy CEO and COO in 2022.

He will join Rivian in August, replacing Frank Klein who had been operations head since 2022 and is stepping down after helping with the ramp-up of the R1 SUVs and pickups.

"Varela will be central to the company's growth and profitability," Rivian said. "He will oversee operations including procurement, manufacturing, logistics and quality."

The company had on Thursday said it received $827 million in an incentive package from the State of Illinois to expand operations at its Normal facility, where it aims to produce its less-expensive midsize SUV R2 model.

(Reporting by Aditya Soni in Bengaluru; Editing by Arun Koyyur)