GOTEBORG, Sweden, Dec. 18, 2002 (PRIMEZONE) -- AB Volvo's (Nasdaq:VOLVY) business unit Volvo Powertrain AB is investing a total of SEK 375 M in its plants in Skovde, Sweden. The investments cover a new line for casting and modifications of the machining systems for the next-generation heavy diesel engine.
The investments are the first step in work to align the industrial system for the next-generation heavy diesel engine. As a result of the initial investments of SEK 375 M, capacity in the foundry on the new FPC (Future Process for Casting) line is being doubled to 80,000 cylinder blocks per year. FPC is Volvo Powertrain's patented casting method, which won the World Foundry Organization's (WFO) environmental prize for 2002. The FPC method gives the material added strength, favorable casting properties, good machinability and reduced environmental impact. The machining investment involves rebuilding and modification of existing equipment for the new engine program. The capacity is within the framework of Volvo Powertrain's permit from the environmental court.
Volvo Powertrain AB is a business unit within AB Volvo with responsibility for development and manufacture of engines, gearboxes, axles and complete drivelines for heavy commercial vehicles and applications for the Volvo, Renault and Mack brands. The company is one of the largest in its industry. Volvo Powertrain has about 8,000 employees and conducts operations in Sweden, France, the U.S. and Brazil.
December 18, 2002
For further information contact: Jorgen Gustafsson +46 31 739-022 849
The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 71,000 people, has production facilities in 25 countries and sells their products in more than 185 markets. Annual sales of the Volvo Group amount to 18 billion euro. The Volvo Group is a publicly-held company headquarterd in Goteborg, Sweden. Volvo shares are listed on the stock exchanges in Stockholm, London, Brussels and Frankfurt and on NASDAQ in the U.S.
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