Volvo Aero and GE Expand Cooperation
Volvo Aero and General Electric (GE) have signed a new agreement whereby Volvo Aero will increase its stake in the LM2500 industrial gas turbine. The new contract applies to the high-pressure compressor spool, stage 14 to16. The new agreement with GE means an investment of approximately US$9.5 million for Volvo Aero. Volvo Aero has been producing the 3-9 spool for the high-pressure compressor in the LM 2500 for a number of years.
This is the second time during 2004 that the company has expanded its cooperation and as a result, Volvo Aero’s sales are expected to rise by about US$5.4 million. In March 2004, GE and Volvo Aero signed an additional contract covering the high pressure compressor discs, stage 1 and 2, in the LM2500. Volvo Aero has been a risk-sharing partner in the LM2500 since 1997.