Volvo 2004 Annual Report Download - page 33

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31
Production and investments
In 2004, Volvo Aero extended its cooper-
ation with General Electric, as Volvo Aero
became a partner in the new GEnx
engine for the future Boeing 787 and
Airbus A350. GE and Volvo Aero also
signed agreements whereby Volvo Aero
increased its stake in the LM2500 indus-
trial gas turbine.
Volvo Aero also acquired the company
Aero-Craft outside Hartford, Connecticut,
USA. The acquisition was part of forming
a strategic alliance with the forged com-
ponents manufacturer Carlton and will
allow Volvo Aero to expand its range of
specialized parts with fan cases. Aero-
Craft primarily manufactures components
for large industrial gas turbines and for
aircraft engines.
During 2004, Volvo Aero Services
(VAS) and British Airways signed a multi-
year agreement, whereby VAS will sell
designated surplus spare parts from
British Airways. VAS also signed agree-
ments with, among others, Air Pacific,
which will be provided with spare parts
from the Boeing Company.
Overhaul contracts were signed with
Continental Airlines, whereby Volvo Aero
will inspect, repair and overhaul
Continental’s fleet of 30 aircraft with
PW121 engines.
Volvo Aero and Harrods Aviation also
signed an agreement, whereby Volvo
Aero will give full support for heavy main-
tenance and overhaul of the Honeywell
TFE 731 engine.
In June, Sweden and the Czech
Republic signed a leasing agreement for
14 Gripen fighter aircraft for 10 years.
Volvo Aero is responsible for service and
product support of the RM12 engine for
the Gripen fighter.
Ambitions for 2005
Volvo Aero will work hard to meet the
sharp increase in demand for new engine
components, with a continuous focus on
cost.
For 2005, the ambition is also to make
sure the development of the GEnx engine
runs smoothly and meets the time
schedule. The ambition is also to inte-
grate Aero-Craft and to start building up
the extension into fan cases as a special-
ization.
Volvo Aero also aims to improve the
aftermarket businesses by increased
volumes and reducing costs.
Net sales per market
SEKM 2002 2003 2004
Western Europe 3,422 3,951 3,130
Eastern Europe 28 49 49
North America 4,573 3,301 3,127
South America 177 152 138
Asia 497 428 400
Other markets 140 149 81
Total 8,837 8,030 6,925