Volvo Cars has announced that its component plant in Floby, Sweden will be sold to India’s Amtek Group. The Floby plant produces brake discs, wheel hubs and connecting rods for passenger cars and commercial vehicles. The Floby plant, located in Western Sweden, is a supplier to the global automotive industry with around 70 percent of its output sold to external customers, outside Volvo Cars. The plant, which has a long history of high quality products and long-term customer relationships, employs 441 people, all of whom will retain their positions under the new ownership.
“I am very pleased with Amtek as the new owner of the Floby plant. As a global company with a strong presence in the automotive business, Amtek is in a good position to develop and further strengthen the competitiveness of the Floby plant,” said Lars Wrebo, senior vice-president (Purchasing and Manufacturing), Volvo Cars. The Amtek Group is one of the largest integrated component manufacturers in India with a strong global presence. It has also become one of the world’s largest global forging and integrated machining companies. The Group has operations across forging, iron and aluminium castings, machining and sub-assemblies. It has world-class facilities across India, UK, Germany, Brazil, Italy, Mexico, Hungary and US. The Group is comprised of corporate entities including Amtek Auto, JMT Auto, Amtek Global Technologies and other subsidiaries and associates.
Amtek has a large and varied global clientele. In the two-wheeler industry, it caters to Hero MotoCorp, Honda, Suzuki, Yamaha and TVS Motor Co. For passenger cars, it supplies to Jaguar Land Rover, BMW, Daimler, Chrysler, General Motors, Hyundai, Magna, Maruti Suzuki India, Tata Motors and Honda. In the heavy commercial vehicle segment, its components are supplied to Detroit Diesel, Daimler, Iveco, MAN, Scania, Volvo, Tata Motors and Force Motors while it supplies components for light commercial vehicles to Ashok Leyland, Mahindra & Mahindra, Eicher Motors, Nissan, Tata Motors and Swaraj Mazda. Under Amtek’s ownership, Volvo Cars will continue to source components from the Floby plant. The change of ownership will take place at the end of calendar year 2015. No financial details about the transaction have been disclosed.
