Contract for british helicopter engine overhaul is an important breakthrough for Volvo Aero

CONTRACT FOR BRITISH HELICOPTER ENGINE OVERHAUL IS AN IMPORTANT BREAKTHROUGH FOR VOLVO AERO Volvo Aero has signed an agreement with the United Kingdom MoD (Ministry of Defence) for the overhaul of a number of helicopter engines. The contract is an important breakthrough for Volvo Aero in the British market as it is the first time such an order has been placed outside the UK. The order can lead to a large number of helicopter engines coming to Trollhättan for repair and overhaul. The helicopter engine involved is the Rolls-Royce Gnome, an engine type that has that has been overhauled by Volvo Aero since 1962. Swedish and Belgian defence forces are currently the primary customers. The Gnome engine is installed in the Boeing Vertol 107, fourteen of which are operated by Swedish defence forces. In the United Kingdom, approximately 400 Gnome engines are operated by the MoD in GKN Westland Sea King helicopters. Five of these engines are to be overhauled by Volvo Aero in Trollhättan during the spring of this year. Five engines does not sound very many but even so, the contract is an important breakthrough for Volvo Aero as it is the first time the UK Minstry of Defence has placed such a contract outside the UK. Volvo Aero was chosen particularly because of the high quality of engine overhaul performed in Trollhättan. This is shown by the fact that the unplanned rejection rate of Gnome engines from Swedish helicopters is half that of the UK MoD's Gnome engines today which has a big impact on cost of ownership and aircraft serviceability. Overhaul of the Gnome engine takes around ten weeks. Volvo Aero has a long history of "rate-per-flying-hour" agreements with the Swedish defence forces, which means that the operator pays a fixed sum for every hour flown instead of for each workshop visit. This type of agreement means that both parties have a common interest that engine reliability is as high as possible. The contract we have now signed with the UK MoD is a big step. We shall now be able to show what we can do with these five engines. If the customer is pleased, we can count on further business with the UK MoD, says Lars Sundberg, Senior Vice-President, Business Area Engine Services. Engine Services has operations in both Trollhättan and Bromma. During the year 2000, sales for the division were 2.5 billion kronor; around 24 percent of Volvo Aero's total sales. March 8, 2001 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/08/20010308BIT00850/bit0002.doc http://www.bit.se/bitonline/2001/03/08/20010308BIT00850/bit0002.pdf