Semcon has signed an agreement with Volvo worth SEK 180 million.

Semcon has signed an agreement with Volvo worth SEK 180 million. The letter of intent signed on the 4/12/98 between Volvo Personvagnar and Semcon AB has been implemented according to plan. Volvo Personvagnar and Semcon AB have today signed an agreement where Semcon will take over certain sections of work currently carried out within Volvo Personvagnar's Technical Service Unit. The agreement is in the form of a three-year rolling contract and the volume for the first three years is expected to be in the region of SEK 180 million. The agreement will come into force on the 1/4/99. The intention is to develop a long-term strategic working partnership. "Ever since the letter of intent was signed in early December, we have been working fast and hard to bring about an agreement in the first three months of this year," explains Hans Johansson, Managing Director of Semcon, who adds: "There are many details to be gone through, so we are naturally pleased that negotiations have been so positive and led to an agreement so quickly." "We view future partnership with Semcon in a very positive light," says Thomas Lindskog, Manager of Volvo Personvagnar´s Technical Service Unit. "It is also gratifying to know that twenty or more staff from the Technical Service Unit will be offered employment at Semcon." The activity which Semcon will be taking over consists of the production of text and illustrations for the private car after-sales service, such as owner's and servicing guides and also workshop manuals. The agreement covers production, resources and personnel. At least 20 staff at Volvo Personvagnar's Technical Service Unit will be offered employment at Semcon. At the same time an organisation for a primary and secondary supplier structure is being set up for Volvo, which will include around fifty consultants. The international consultancy company MSX, which includes Ford as one of its customers, will be an important part in this organisation. Semcon and MSX have worked together for many years on a number of development projects for the automotive industry. By means of the agreement Volvo Personvagnar on a long-term basis expects to be able to save minimum 15 percent through process optimisation and the use of more efficient IT-aids. For more information, please contact: Hans Johansson, Semcon AB, Tel: +46-31-721 08 66, Mobile: +46-70-591 43 34 Caroline Krensler, Semcon AB, Tel: +46-31-721 08 46, Mobile: +46-70-895 29 29 Thomas Lindskog, Volvo Personvagnar AB, Tel: +46-31-59 26 67, Mobile +46-70- 824 99 99 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/01/19990201BIT00060/bit0001.doc http://www.bit.se/bitonline/1999/02/01/19990201BIT00060/bit0002.pdf