GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
FinnvedenBulten’s (STO:FBAB) division Finnveden Metal Structures has signed an agreement with Volvo Cars regarding the joining of sub frames in Olofström. The agreement, which runs at least three years, is a step towards streamlining customer/supplier relations between the companies.
Since Finnveden Metal Structures’ takeover of the factory in Olofström, Volvo Car Body Components has been renting space in the plant. In order to streamline operations and increase capacity for joining operations, Finnveden Metal Structures has today signed an agreement with Volvo Car Corporation for taking over the assembly of the sub frame for some Volvo Cars models.
“Discussions have been ongoing for some time and it feels like a natural step for both operations that we take over the assembly of these structures. We will continue to deliver sub frames to Volvo Car Corporation while we also open up the possibility of increased production in the segment,” says Johan Westman, President and CEO of FinnvedenBulten.
The equipment, consisting of two welding lines and a processing line, will be taken over by Finnveden Metal Structures. Training of Finnveden Metal Structures’ staff under VCBC’s management has been ongoing for some time, and will continue throughout the autumn to ensure continued high quality and delivery precision.
As part of FinnvedenBulten’s development of the plant in Olofström, a decision has also previously been taken to invest in a new 1,500 tonne press. The purpose is mainly to meet the demands from our customers in the segment for larger and more complex components and structures, primarily for commercial vehicles. By this we also strengthen the company's competitiveness and create opportunities for further growth.
NB The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act (Sw. lag om värdepappersmarknaden).
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Finnveden Metal Structures and Bulten – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.
Division Finnveden Metal Structures manufactures products in steel, magnesium and aluminium, or a combination of those materials. The main manufacturing processes are stamping, die casting and joining. The components include interior, chassis and body parts for the automotive industry, as well as customised components for general industry, which account for a small but growing share of sales.
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