Swedish bus, truck and construction equipment manufacturer AB Volvo has signed a letter of intent (LOI) with MAPE to sell its crankshaft plant located in Leganes, Spain, as a part of restructuring and cost-cutting plan.
The LOI includes conditions regulating the plant sale, lease of the building and the continued supply of crankshafts to the Volvo Group.
Currently, part of the plant's production capacity is used to build crankshafts for medium-duty engines but this will be relocated in conjunction with the switch to a new generation of engines in 2013.
MAPE is a manufacturer of crankshafts, balance shafts, camshafts and connecting rods and is a supplier to the Volvo Group.
Volvo Group Trucks Operations executive vice president Mikael Bratt said MAPE is a machining specialist with the potential, expertise and ambition to further develop and expand the plant.
"It is also important for us to secure continued supply from the plant for some of our heavy-duty engines," Bratt said.
MAPE Chairman of the Board Giuseppe Pederzini said the acquisition of Volvo's Leganes plant will enable the company to expand its business in the heavy-duty engine segment.
"The available capacity will allow us to add additional customers that are considering outsourcing crankshafts," Pederzini said.
