Volvo buys from Albion
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by John Kendall • Following Albion Automotive Industries' acquisition of Volvo's Farington Components operation (CM 5-11 October), Volvo is placing a number of contracts with Albion for the supply of components.
These include: A three-year deal to supply the products currently made by Farington for the Volvo Truck Group— excluding gearbox re-manufacturing, which is to be phased out; El A five-year contract beginning in 1996 to be the main supplier of PTOs to the Volvo Truck Group worldwide; A five-year contract starting in 1997 to be the main supplier of driveline flanges to the Volvo Truck Group worldwide. Current production at Farington focuses on components for Volvo bus gearboxes. Provided that the Farington plant is competitive on price, quality, delivery and technology, both parties hope to sign more production contracts.
Farington will concentrate on producing transmission and engine components under Albion's control. These will include gears, PT0s, gearboxes and flanges, and possibly oil and water pumps, timing/front train gears and rockers.
The Farington acquisition gives Albion an annual turnover of around ,C70m and 1,160 employees in three plants.