Volvo 2010 Annual Report Download - page 42

Ambitions 2010
• Manage the continued development responsibility and supply test hardware
for the new engine programs Trent XWB and PWG1000G.
• Increase productivity in carried-out investments, shorten lead times and
reduce costs.
• Continue to gain market share within engine services.
• Conduct a strategic overhaul of the American aftermarket business.
VOLVO AERO
Volvo Aero offers advanced
components for aircraft
engines and space applica-
tions with a focus on light-
weight technology for
reduced fuel consumption.
Services for the aerospace
industry and for stationary
gas turbines are also
offered.
Staffan Zackrisson
President of Volvo
Aero.
Number of employees
2,863
Position on world market
Volvo Aero holds a leading position as
an independent producer, with engine
components in about 90% of all large
commercial aircraft delivered in 2010.
In recent years, Volvo Aero has taken more design
responsibility and currently develops components
for both aircraft and rocket engines, which are
based on a proprietary design system and propri-
etary manufacturing technologies. The business
area’s engine components are found in more than
90% of all new major civil aircraft worldwide.
Focus on core operations
The aim of most of the technological develop-
ment is to reduce the weight of proprietary com-
ponents in various manners, since weight is
highly significant in fuel consumption and emis-
sions of carbon dioxide. This is an area that is
becoming increasingly important to the aviation
industry, both in terms of the climate and econ-
omy. Naturally, quality and safety are also in focus
in the effort to reduce weight.
In recent years, Volvo Aero has focused
increasingly on its core operations: maintenance
of a few selected engines and developing and
manufacturing sophisticated components for air-
craft and rocket engines. As a result of this strat-
egy, certain other operations have been divested
or discontinued.
Major engine programs
During 2010, Volvo Aero was highly involved in all
four new major engine projects that are occupying
the aircraft-engine industry and will be highly sig-
nificant to the development of the aircraft of the
future. During the year, a number of key milestones
were achieved in the development of these engines:
These include the starting of the new Rolls-
Royce engine, Trent XWB, in a test cell for the
first time in June. Volvo Aero is a joint-venture
partner in the XWB engine, responsible for
design, development and manufacture of the
intermediate case, the first in titanium to be
developed and manufactured entirely within
Volvo Aero’s new design system. The Trent XWB
will be used in the Airbus A350 XWB, which is
scheduled to enter service in 2013.
Pratt & Whitney completed the assembly of
the first PW1000G engine, “PurePower”, for the
Bombardier C series aircraft and Mitsubishi’s
MRJ aircraft. Volvo Aero is a joint-venture partner
in the engine, responsible for the design, devel-
opment and manufacture of a couple of compon-
ents. Following the final assembly, a comprehen-
sive evaluation and certification program
commenced, which will continue for the next 24
months, with engine certification and the first
flight with the aircraft scheduled for 2012. The
aircraft is scheduled for commercial use in 2013.
The first flight of Boeing’s upgraded 747-8 air-
craft was successfully executed in the spring,
using four GEnx-2B General Electric engines.
Volvo Aero is joint-venture partner in the GEnx
engine, with responsibility for design and develop-
ment of three components, and will manufacture a
total of five different components for the engine.
In 2007, Volvo Aero was contacted by Pratt &
Whitney about redesigning the intermediary case
for the GP7000 engine for the Airbus A380. One
of several requirements specified was that the
weight should be reduced by at least 10%. At the
end of the year, Volvo Aero was able to present a
solution that met these requirements.
Key agreements
The Defence Materiel Administration (FMV) and
Volvo Aero signed an agreement entailing that
Volvo Aero will be responsible for engine mainten-
ance, spare parts supply and technical product
support for the Gripen aircraft engine in Sweden,
Hungary and the Czech Republic. The agree-
ment, which is valid for two years, with an option
for an additional three years, is estimated to be
worth approximately SEK 1.2 billion for Volvo
Aero if the option is exercised.
In terms of maintenance, a key partnership
agreement was signed with Lufthansa Technik
(LTH), whereby Volvo Aero has already provided
the first repairs to an engine in service. The
repairs were approved by General Electric.
Lufthansa and Volvo Aero now has exclusive
rights to implementation.
Volvo Aero made a strategic decision to focus on
its core operations and as a result, the US subsidiary
Improved profitability in
the core business Volvo Aero is playing an increasingly major role in the
aircraft-engine industry. The business area is specialized
in sophisticated structures, engine cases and rotating parts
of aircraft engines.
BOARD OF DIRECTORS’ REPORT 2010
38