Volvo 2002 Annual Report Download - page 23

and old spare parts. Concurrently, the Land
& Marine Gas Turbines unit was affected
by the decline in the gas turbine market.
Despite the deep crisis in the aviation
industry, Volvo Aero’s Aerospace Com-
ponents and Military Engines business
units were able to deliver positive earn-
ings for the full year, which offset the
declines in the other business units.
Production and investments
Only a year after Volvo Aero and Rolls-
Royce signed a contract making Volvo
Aero a partner in the Trent 500 engine
program, the company was able to deliv-
er the first intermediate compressor case
from Trollhättan in summer 2002. For this
purpose, investments have been made in
a completely new “Trent workshop”.
Additionally, Volvo Aero is one of the
initiators of the Digitally Linked Process
Control project, aimed at substantially
reducing lead times from product develop-
ment to completed product by employing
new technology in all production phases.
The project involves the construction of a
development laboratory, in which all
processes are linked digitally to a virtual
workshop, a workshop that has proven to
be without equal in the aerospace industry.
During the sharp downturn in the aviation
aftermarket, Volvo Aero Services (VAS)
focused on establishing long-term con-
tracts with airlines and other players in
the industry. VAS has succeeded in sign-
ing contracts with companies that include
Pratt & Whitney, Bombardier, Goodrich,
Nordam, AeroXchange and Air Asia.
In 2002, Volvo Aero Engine Services
signed a contract with the Russian airline,
Aeroflot, under which Volvo Aero will
overhaul Aeroflot’s JT9D-59A engines,
which are used in the airline’s fleet of
DC10-40 aircraft. The order value is esti-
mated at SEK 600 M, making it the
largest single maintenance order signed
by Volvo Aero since 1998. New overhaul
contracts were also signed with Corsair
International of France, Centurion Air
Cargo company and Sabena Technics,
among other companies.
During the autumn, the first aircraft of
the latest JAS 39 Gripen model, the 39C,
was delivered to the Swedish Air Forces.
The aircraft incorporates a large number
of modernizations of the Gripen aircraft,
which include the RM12 engine being fit-
ted with Volvo Aero’s proprietary flame-
holder, new intake and FADEC (Full
Authority Digital Electronic Control).
During the year, Volvo Aero’s Space
Propulsion Division delivered its first com-
plete sandwich nozzle for the RL60. This
is the first step towards the full-scale
development of the RL60, the next gener-
ation of liquid oxygen/hydrogen- powered
rocket engines developed by the
American company Pratt & Whitney.
Ambitions for 2003
The aviation industry’s sharp downturn
necessitates continued adaptation to
new conditions while opportunities for
increasing market shares are also created
during a recession.
Accordingly, Volvo Aero aims to con-
tinue building its components business
and will make strong efforts to become in-
volved in new engine programs, either as
a partner or long-term supplier.
In the service sector, major efforts are
being made in developing the customer
offering and signing long-term contracts
with airlines, partners and other cus-
tomers for both engine overhaul and
spare parts/service offers.
Activities continue in support of
Saab/BAE’s export efforts in selling the
Gripen. Major efforts are being made to
ensure that Volvo Aero is provided the
appropriate conditions to continue further
development of the RM12 engine.
Net sales per market Volvo Aero
SEKM 2000 2001 2002
Western Europe 4,651 4,788 3,422
Eastern Europe 42 87 28
North America 5,040 5,841 4,573
South America 134 187 177
Asia 701 708 497
Other markets 45 173 140
Total 10,713 11,784 8,837