Volvo Buses to Close Aabenraa Plant

Goteborg, SWEDEN

GOTEBORG, Sweden, Dec. 10, 2003 (PRIMEZONE) -- Volvo Buses is to close its bodybuilding plant in Aabenraa, Denmark. The formal decision was taken yesterday 9 December by the board of Aabenraa Karosseri A/S. In all, about 200 employees will be affected by the closure.

Volvo Buses has suffered substantial losses in recent years due to a severe decline in demand in several markets, not least in Denmark.

As a result, Volvo Buses now has significant overcapacity in its European production plants. In a move to improve its profitability, the company is presently restructuring its manufacturing organisation by concentrating the production of finished buses in a smaller number of plants and using its Polish plant as a high-volume facility.

The Aabenraa plant is expected to close during the second half of 2004. Although the workforce of approximately 200 will be made redundant, opportunities of alternative employment at other Volvo plants will be examined.

Under the plans, buses for the Danish market will continue to be bodied mainly by Saffle Karosseri AB, which is already producing vehicles for markets including Denmark.

Worldwide, Volvo Buses has reduced its workforce by about 800 in 2003 to date.

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