Volvo Signs Letter of Intent to Sell Plant in Spain image

Volvo recently signed a letter of intent with MAPE to sell the crankshaft plant in Leganes, Spain, which currently has 150 employees.

Volvo announced it will sell the plant in Spain for structural reasons. Part of the facility’s production capacity, which is used by the automaker to build crankshafts for its automotive medium-duty engine platform, will be relocated and adapted to a new generation of engines in 2013.

“This comprises part of our effort to develop an improved industrial footprint, in line with our new strategy,” says Mikael Bratt, Executive Vice President of Volvo Group Trucks Operations. “I believe MAPE will be a good owner of the Leganes plant.”

MAPE, which is already a supplier of Volvo, is one of the most important mechanical integrator specialized in balance shafts, crankshafts, connecting rods and camshafts, with operations in the US, Sweden and Italy. According to Giuseppe Pederzini, Chairman of the Board of MAPE, this letter of intent represents the prefect opportunity for the company to expand its heavy-duty engine segment and add more customers.

The letter includes conditions of the plant sale, the lease of the building and also terms under which MAPE will continue to supply crankshafts to the Volvo Group.