The Swedish government invests in Ariane - Volvo Aero's space operations saved

The Swedish government invests in Ariane - Volvo Aero's space operations saved

The Swedish government has decided that Sweden will continue to participate in
the European launch-vehicle program. This means that Volvo Aero's space
operations in Trollhättan will be saved and can continue to advance.
“The government's proposal is very positive. This means that we will maintain
our leading position in nozzles and turbines for space rockets,” says Staffan
Zackrisson, President of Volvo Aero.

Since 2008, the threat has lingered heavily over Volvo Aero's space operations,
with its approximately 150 employees. The government is now proposing continued
financing for the European launch-vehicle program. This means that Volvo Aero
can remain a supplier of turbines and nozzles to the European Space Agency's
(ESA) research and development program for launch vehicles and manufacturing of
these components for serial production. 

During the autumn, two important demonstration tests can now be carried out that
will enable significant improvements of the rocket engine. 

“We are currently looking forward to discussions with the Swedish National Space
Board and ESA regarding how the Swedish investment can best be utilized on
Sweden's behalf,” says Staffan Zackrisson. 

At a meeting of ministers in The Hague in November, Sweden directed sharp
criticism against ESA's management of the Ariane space program. The criticism
concerned cost efficiency and political transparency. 

“We hope that the government's criticism will lead to improvements and we
believe that Volvo Aero can contribute to the political process,” says Staffan
Zackrisson.

June 4 2009

For more information, contact Ulf Palmnäs, Deputy Vice President Business
Development, +46 (0)520-937 23, +46 (0)705 690 432.

Volvo Aero develops and manufactures components for aircraft and rocket engines
with a high technology content in cooperation with the world's leading
producers. Volvo Aero offers an extensive range of services, including sales of
spare parts for aircraft engines and aircraft, sales and leasing of aircraft
engines and aircraft, as well as overhaul and repair of aircraft engines. Volvo
Aero is part of the Volvo Group, one of the world's leading manufacturers of
trucks, buses and construction equipment, drive systems for marine and
industrial applications, aerospace components and services. The Group also
provides complete solutions for financing and service. Please visit
www.volvoaero.com for more information about Volvo Aero.