In accordance with a new agreement with General Electric, Volvo Aero will manufacture components for the GE90-115B, with an estimated order value of SEK 2 billion over the next ten years.
According to the Long Term Agreement, Volvo Aero will commence production of several components for the GE90-115B engine in 2006.
The agreement is for three components that are within Volvo Aero's focused specialization:
· Fan Hub Frames will result in synergies with the corresponding components for General Electric's future GEnx engine, for which Volvo Aero has development responsibility. The component will be manufactured in Trollhättan.
· Low Pressure Turbine Cases are components for which Volvo Aero already has a large market share. This position will now be further strengthened. Manufacturing will take place in Trollhättan.
· Turbine Rear Frames will also generate synergies with the corresponding components in General Electric's future GEnx engine. Production will take place in Kongsberg.
Through its company Volvo Aero Norge, Volvo Aero is already a program partner and supplier of, for example, shafts for the GE90 engine. The new agreement does not mean that Volvo Aero will expand its program share, but will be a long term supplier of these components.
"This is a strategically significant transaction for Volvo Aero. The Boeing 777 is competitive in its market segment and will be successful during the next 10-15 years," comments Anders Nilsson, Vice President Business Development at Volvo Aero. "In recent years, we have made major investments in the production facilities in Trollhättan and Kongsberg. This agreement is an indication that we are competitive in production-based transactions."
December 22, 2005
For further information, please contact Stefan Oscarsson, Business Manager, Volvo Aero, phone: +46 70-674 6277