Volvo CE invests in a new paint shop

Volvo CE is investing SEK 341 million in a completely new paint shop in the company’s articulated hauler plant in Braås, Sweden. This investment will lead to an increase in capacity in the plant, a reduced impact on the environment and added improvement in quality.

The total market for articulated haulers has more than doubled in recent years and current demand is greater than ever before. In order to meet this increased demand, during the past few years, Volvo CE has made running investments to boost capacity in the articulated hauler plant in Braås. It is now the paint shop’s turn and it will be replaced by an entirely new facility that will be completed in 2010.

The investment in the new paint shop will increase capacity by approximately 55 percent compared with the existing one. This will also result in a number of improvements with respect to the environment, such as a reduction of some 75% in emissions of Volatile Organic Compounds (VOC) which above all can be attributed to a switch from solvent-borne paints to water-borne ones. This also represents a considerable improvement in the internal working environment.

The investment in the new paint shop also means that the quality will be further improved, making it possible to further meet our customers’ high expectations.

June 13, 2008

For reporters who want more information, please contact Klas Magnusson, +32 475 576214.

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AB Volvo (publ) may be required to disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 09.00 a.m. June 13, 2008.