Volvo plans to develop cooperation ties with Taiwanese partners

Taipei, May 16, 2005 (CENS)--The Volvo Group of Sweden, a leading truck and bus manufacturing group, plans to invest in Taiwan and develop cooperation ties with local partners, according to the Ministry of Economic Affairs (MOEA).

MOEA confirmed that Volvo Group has expressed its willingness to move relevant test operations of the group's hybrid-power (electricity and diesel) buses to the island, while Volvo Aero, an aerospace-parts manufacturing affiliate of Volvo, also plans to negotiate with local Aerospace Industrial Development Corp. (AIDC), the largest aircraft maker in Taiwan, to set up strategic-alliance ties.

Economic Minister Ho Mei-yueh recently visited Sweden and strived to persuade makers there to invest in Taiwan. In addition to Volve, SKF Group also plans to study the feasibility of investing in or developing cooperation ties with Taiwan. SKF is the leading global supplier of rolling bearings and seals as well as related customer solutions and services.

According to MOEA, the Volvo Group generated revenue of US$28.6 billion in 2004 from its five major business divisions including truck and bus, aerospace parts etc. The group currently produces 180,000 trucks and buses per year, accounting for 14% of the global market. Volvo's headquarters in Sweden locally produces 97,000 trucks and buses as well as over 100,000 sets of parts per year. The company gets parts from a supply chain comprising about 350 parts suppliers worldwide. As to Volvo Aero, it specializes in developing and manufacturing aircraft engines and mechanical parts. The division now commands an 80% share of the global market for key aircraft-engine parts.

MOEA said that Volvo is interested in moving the test operations under its hybrid-power truck/bus development projects to Taiwan.

During her stay in Sweden, Minister Ho met with Volvo Aero president Fred Bodin, who expressed strong willingness to develop cooperation ties with Taiwanese aerospace manufacturers.