Volvo CE invests in a new paint shop

Volvo CE invests in a new paint shop

Volvo CE is investing SEK 341 million in a completely new paint shop in the
company's articulated hauler plant in Braås, Sweden. This investment will lead
to an increase in capacity in the plant, a reduced impact on the environment and
added improvement in quality. 


The total market for articulated haulers has more than doubled in recent years
and current demand is greater than ever before. In order to meet this increased
demand, during the past few years, Volvo CE has made running investments to
boost capacity in the articulated hauler plant in Braås. It is now the paint
shop's turn and it will be replaced by an entirely new facility that will be
completed in 2010.   

The investment in the new paint shop will increase capacity by approximately 55
percent compared with the existing one. This will also result in a number of
improvements with respect to the environment, such as a reduction of some 75% in
emissions of Volatile Organic Compounds (VOC) which above all can be attributed
to a switch from solvent-borne paints to water-borne ones. This also represents
a considerable improvement in the internal working environment.  

The investment in the new paint shop also means that the quality will be further
improved, making it possible to further meet our customers' high expectations.

June 13, 2008

For reporters who want more information, please contact Klas Magnusson, +32 475
576214.

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AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 09.00 a.m. June 13, 2008.


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 100,000 people,
has production facilities in 19 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about SEK 285 billion.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on OMX Nordic Exchange Stockholm.