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Volvo Buses to Sell Body Plant in Turku
STOCKHOLM, Sweden-(Business Wire)-July 3, 2008 - Regulatory News:
The plant in Turku produces bodies for the Volvo 9700 model. The Turku plant is the smallest plant within Volvo Buses (STO:VOLVA)(STO:VOLVB), primarily producing for the Nordic markets. During 2007, 160 bodies were produced.
The company has determined that it is more efficient to sell the plant and purchase bodies from the new owner. In accordance with the letter of intent, the new owner will also continue to, under license, produce the Volvo 9700 for Nordic customers. Volvo Buses will keep the commercial responsibility for the Volvo 9700.
The buyer consists of a group of private Finnish investors and managers from Volvo Buses in Finland. The ambition is that the final agreement will be signed during the coming months and takeover can occur during September. In accordance with the letter of intent, the buyers are taking over the plant, including personnel. Today there are about 300 employees in the plant.
The intended divestiture of the assets will be made at book value and will not have a material impact on the earnings or the financial position of the Volvo Group.
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Volvo Bus Corporation is one of the world's largest manufacturer of large buses and coaches. The range comprises complete vehicles, chassis, bus bodies, transport system solutions for metropolitan traffic, leasing, financing and service contract maintenance. Volvo Bus Corporation 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.
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