Volvo Aero acquires Applied Composites

Volvo Aero has acquired composites manufacturer Applied Composites AB, for an undisclosed purchase price.

Volvo Aero (Stockholm, Sweden) has acquired composites manufacturer Applied Composites AB (ACAB, Linköping, Sweden), for an undisclosed purchase price. The acquisition, implemented on Dec. 10, 2007, makes ACAB a wholly owned subsidiary of Volvo Aero. Currently, there are no plans to change the name. Volvo Aero intends to immediately establish a new operation that will develop and manufacture certain selected aircraft engine components using composite materials, with the goal of lighter and more fuel-efficient engines that produce fewer emissions.

"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. The company will invest approximately SEK 50 million ($7.7 million USD) on composites R&D over the next 18 months.

ACAB was founded in 1988 and today is a leading company in the development and production of advanced composite products for military and commercial customers. Volvo Aero's activites include development and manufacture of components for aircraft and rocket engines 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 engie overhaul and repair.

The new operation at ACAB will begin immediately. Personnel recruitment is underway to expand its current workforce of 70.

Torgny Stenholm, previously the VP of space markets and programs at Volvo Aero, has been appointed the new president of ACAB. Former ACAB president Björn Thundal will join ACAB's board of directors.