Volvo Aero Acquires Composite Company to Develop Lighter Aircraft Engines
December 11 2007 - 2:02AM
Business Wire
Regulatory News: Volvo Aero has acquired the composite company
Applied Composites AB (ACAB) in Linkoping, which currently has
approximately 70 employees. The aim of the acquisition is to use
ACAB and its technology to develop and manufacture aircraft engine
components in composite materials, which are significantly lighter
than the comparable parts in metal. "The acquisition is part of our
investment in lightweight technologies, which will result in
reduced fuel consumption and, consequently, lower emissions from
aircraft," explains Olof Persson, President of Volvo Aero. As a
consequence of the acquisition, Volvo Aero will invest
approximately SEK 50 M in research and development within the area
of composites during the next 18 months. ACAB, which is expected to
report sales in 2007 of SEK 110 M and operating income of SEK 13 M,
was founded in 1988 and is a leading company in development and
production of advanced composite products. The company has military
and commercial customers. Volvo Aero intends to immediately
establish a new operation that will develop and manufacture certain
selected aircraft engine components in composite materials. These
components will be significantly lighter than comparable components
in metal and will then significantly influence the fuel consumption
and, thereby its carbon dioxide emissions. "Lightweight technology
is already one of our focused areas. Our goal is to become a world
leader in lightweight structures. For that reason, it feels natural
that we take this step by utilizing the broad and deep knowledge
within ACAB," says Olof Persson. The new operation at ACAB will
start work immediately. As a result, recruitment of personnel for
the development side of the operation will begin at once. Torgny
Stenholm, who previously held the position of Vice President Space
Markets and Programs at Volvo Aero, has been appointed new
President of ACAB. Torgny Stenholm will assume his position at
year-end. Former President Bjorn Thundal will be a member of ACAB's
Board of Directors. Facts about ACAB Prior to the acquisition, ACAB
was owned by Tibia Konsult AB (67%), among other holders. The
parties have agreed not to disclose the purchase price. The
transaction has a marginal effect on the Volvo Group's
profitability, net financial position and earnings per share. The
acquisition was implemented on December 10. Since then, ACAB is a
wholly owned subsidiary of Volvo Aero. Currently, there are no
plans to change the name. 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
(NASDAQ:VOLV) (STO:VOLVA) (STO:VOLVB), 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. This information was brought to you by
Cision http://newsroom.cision.com Regulatory News: Volvo Aero has
acquired the composite company Applied Composites AB (ACAB) in
Link�ping, which currently has approximately 70 employees. The aim
of the acquisition is to use ACAB and its technology to develop and
manufacture aircraft engine components in composite materials,
which are significantly lighter than the comparable parts in metal.
�The acquisition is part of our investment in lightweight
technologies, which will result in reduced fuel consumption and,
consequently, lower emissions from aircraft,� explains Olof
Persson, President of Volvo Aero. As a consequence of the
acquisition, Volvo Aero will invest approximately SEK 50 M in
research and development within the area of composites during the
next 18 months. ACAB, which is expected to report sales in 2007 of
SEK 110 M and operating income of SEK 13 M, was founded in 1988 and
is a leading company in development and production of advanced
composite products. The company has military and commercial
customers. Volvo Aero intends to immediately establish a new
operation that will develop and manufacture certain selected
aircraft engine components in composite materials. These components
will be significantly lighter than comparable components in metal
and will then significantly influence the fuel consumption and,
thereby its carbon dioxide emissions. �Lightweight technology is
already one of our focused areas. Our goal is to become a world
leader in lightweight structures. For that reason, it feels natural
that we take this step by utilizing the broad and deep knowledge
within ACAB,� says Olof Persson. The new operation at ACAB will
start work immediately. As a result, recruitment of personnel for
the development side of the operation will begin at once. Torgny
Stenholm, who previously held the position of Vice President Space
Markets and Programs at Volvo Aero, has been appointed new
President of ACAB. Torgny Stenholm will assume his position at
year-end. Former President Bj�rn Thundal will be a member of ACAB�s
Board of Directors. Facts about ACAB Prior to the acquisition, ACAB
was owned by Tibia Konsult AB (67%), among other holders. The
parties have agreed not to disclose the purchase price. The
transaction has a marginal effect on the Volvo Group�s
profitability, net financial position and earnings per share. The
acquisition was implemented on December 10. Since then, ACAB is a
wholly owned subsidiary of Volvo Aero. Currently, there are no
plans to change the name. 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
(NASDAQ:VOLV) (STO:VOLVA) (STO:VOLVB), 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. This information was brought to you by
Cision http://newsroom.cision.com
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