GOTEBORG, Sweden, Sept. 2, 2004 (PRIMEZONE) -- Volvo Aero is acquiring the company Aero-Craft outside Hartford, Connecticut, in the US. The acquisition is part of a strategic alliance with Carlton Forge Works, and will mean that Volvo Aero can expand its range of specialized parts with fan cases. Aero-Craft has some 35 employees and sales of about USD 5 million.
Aero-Craft is located south of Hartford in the northeastern United States. The company is a supplier and sub-supplier to major engine manufacturers, such as Pratt & Whitney and General Electric, but also to other component manufacturers in the industry, including MTU and Volvo Aero. Aero-Craft primarily manufactures components for large industrial gas turbines and for aircraft engines.
The acquisition is part of a strategic alliance with the forged components manufacturer Carlton Forge Works, which is one of Volvo Aero's largest suppliers. The two companies have signed a cooperation agreement for the fan case market. "This is a logical expansion, both technically and from a manufacturing standpoint and is in line with Volvo Aero's strategy of specializing in fan cases. At the same time, we can take advantage of Carlton's advanced technology which already has a strong position in the area of materials," says Volvo Aero president Fred Bodin.
The trend in recent years has been that engine manufacturers have demanded that their component suppliers integrate product offerings as a step in reducing costs.
"This is an opportunity. The partnership with Carlton allows us to create a very attractive joint offering to the major engine manufacturers," says Fred Bodin.
Operations within other units of Volvo Aero will not be affected by the acquisition other than that the company expected that new contracts will be won in the areas of technology, design and production.
Aero-Craft's sales include components for Pratt & Whitney's military engines. For this reason, the US authorities must approve Volvo Aero's acquisition before it can be completed.
September 2, 2004
For further information, please contact: Hasse Nilsson, Vice President Corporate Business Development, Volvo Aero: +46 70 674 6285
Volvo Aero develops and manufactures components for aircraft and rocket engines with a high technology content in cooperation with the world's leading producers. Volvo Aero offers an extensive range of services, including sales of spare parts for aircraft engines and aircraft, sales and leasing of aircraft engines and aircraft, as well as overhaul and repair of aircraft engines. Volvo Aero is part of the Volvo Group, 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.
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