The Defence Materiel Administration (FMV) and Volvo Aero signed an agreement entailing that Volvo Aero will be responsible for engine maintenance, spare parts supply and technical product support for the Gripen aircraft engine in Sweden, Hungary and the Czech Republic. The agreement, 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 Volvo Aero Services was divested at the beginning of October to investment company H.I.G. Capital.