Volvo Cars today announced that its component plant in Floby, Sweden will be sold to Amtek Group, a global manufacturer of automotive components. The Floby plant produces brake discs, wheel hubs and connecting rods for passenger cars and commercial vehicles.
The Floby plant, located in Western Sweden, is a supplier to the automotive industry with around 70 per cent of its output sold to external customers, outside Volvo Cars. The plant has a long history of high quality products and long-term customer relationships. The plant employs 441 people, all of whom will retain their positions under new ownership.
Amtek Group is a component manufacturer with its headquarters in India and manufacturing facilities globally. Its customers are automotive manufacturers as well as companies in other industries.
“I am very pleased with Amtek as the new owner of the Floby plant. As a global company with a strong presence in the automotive business, Amtek is in a good position to develop and further strengthen the competitiveness of the Floby plant”, says Lars Wrebo, Senior Vice President Purchasing and Manufacturing at Volvo Cars.
Volvo Cars will continue to source components from the Floby plant under its new ownership.
The change of ownership will take place at the end of the calendar year 2015. No financial details about the transaction have been disclosed.
Volvo Car Group in 2014
For the 2014 financial year, Volvo Car Group recorded an operating profit of 2,252 MSEK (1,919 MSEK in 2013). Revenue over the period amounted to 129,959 MSEK (122,245 MSEK). For the full year 2014, global sales reached a record 465,866 cars, an increase of 8.9 per cent versus 2013. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 465,866 in 2014 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
As of December 2014, Volvo Cars had over 26,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium) and Chengdu (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).