AB Volvo has signed a letter of intent with MAPE, a leading mechanical integrator specialized in crankshafts, balance shafts, camshafts and connecting rods, to divest the crankshaft plant in Leganes, Spain. The plant has 150 employees.
The Volvo Group plans to divest the Leganes plant for structural reasons. At present, part of the plant’s production capacity is used to manufacture crankshafts for the Volvo Group’s automotive medium-duty engine platform. This production will be relocated in conjunction with the switch to a new generation of engines in 2013.
“This comprises part of our effort to develop an improved industrial footprint, in line with our new strategy,” said Mikael Bratt, executive vice president of Volvo Group Trucks Operations. “I believe MAPE will be a good owner of the Leganes plant. The company is a machining specialist with the potential, expertise and ambition to further develop and expand the plant. It is also important for us to secure continued supply from the plant for some of our heavy-duty engines.”
MAPE is already a supplier to the Volvo Group. The company has operations in Italy, Sweden and the U.S.
“This is a very good opportunity for us to expand our business in the heavy-duty engine segment. Leganes is a well-maintained modern plant and, most importantly, has a very experienced and dedicated workforce,” said Giuseppe Pederzini, chairman of the board of MAPE. “The available capacity will allow us to add additional customers that are considering outsourcing crankshafts.”
The letter of intent contains conditions regulating the sale of the plant, leasing of the building and the continued supply of crankshafts to the Volvo Group. The transaction is not expected to have any material impact on the Volvo Group’s earnings or financial position.
The Volvo Group, headquartered in Göteborg, Sweden, is a leading manufacturer of trucks, buses and construction equipment, as well as drive systems for marine and industrial applications. The Group also provides complete solutions for financing and service.
