Volvo Aero and CE enter into a new major cooperation project
VOLVO AERO AND GE ENTER INTO A NEW MAJOR COOPERATION PROJECT Volvo Aero and GE Aircraft Engines (GEAE) have entered into a new, major military cooperation agreement. The cooperation involves the F414 engine for the F-18E/F (Super Hornet) aircraft series, which is the U.S. Navy's new volume program for their aircraft carrier fleet. Volvo Aero's involvement corresponds to program revenues of about SEK 3 billion (USD 350 M.) "This is a big breakthrough for Volvo Aero. This is the company's first Military Engine Programme that is not strictly connected to the Swedish Airforce," says Fred Bodin, president of Volvo Aero. "The F414 is a natural continuation of Volvo's military cooperation with GEAE. Our successful work with the Volvo RM12 engine for the Gripen multi- role combat aircraft laid the foundation," Fred Bodin adds. Volvo Aero will manufacture structural and rotating components in the engine´s fan and compressor area. The chosen components are part of Volvo Aero's area of specialization. This will result in major coordination gains with the current commercial production, where Volvo Aero is the predominant supplier worldwide of certain components. "This new business coincides precisely with our product strategy and we strengthen our position further, since the F414 is considered to be a military volume program over the next 15-20 years. Production is expected to exceed 2,000 engines," says Fred Bodin. "International cooperative agreements are critical to GEAE´s success in the world arena", says Russel Sparks, Vice President of GEAE´s Military Engines Operation. "The RM12 is a model for successful international cooperation. Volvo Aero´s presence on the F414 clearly improves the engine´s strategic position in the world." In recent years, the military engine market has opened for partnerships and multi-national cooperation in the same way as the commercial market. The F414 contract is a breakthrough for Volvo Aero and prime example of this. January 19, 2000 For further information please contact Hasse Nilsson, Director Marketing, + 46 520 94211 or + 46 70 674 62 85 or Mauritz Ljungman, Vice President Corporate Communications + 46 520 94 424 or + 46 70 594 4853. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/19/20000119BIT00260/bit0001.doc http://www.bit.se/bitonline/2000/01/19/20000119BIT00260/bit0002.pdf