ABVolvo said that its Volvo Powertrain AB business unit is
investing a total of $42.9 million in its plants in Skoevde, southern
Sweden. Volvo Powertrain - which makes engines, transmissions, axles and
complete drivelines for heavy commercial vehicles - said the investments
cover a new line for casting and modifications of the machining systems
for the next-generation heavy diesel engine.
The investments are the first step in work to align the industrial
system for the next-generation heavy diesel engine. As a result of the
initial investments, capacity in the foundry on the new Future Process
for Casting, or FPC, line is being doubled to 80,000 cylinder blocks per
year. FPC is Volvo Powertrain's patented casting method, which
gives the material added strength, favorable casting properties, good
machinability and reduced environmental impact.
The machining investment involves rebuilding and modification of
existing equipment for the new engine program. The capacity is within
the framework of Volvo Powertrain's permit from the environmental
court.
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