Volvo Penta has secured an order from Saudi Arabia for a total of 900 diesel engines. The total value of the order is approximately 200 million Swedish Kronas ($21.22 million). The engines will be used for various industrial applications, primarily in irrigation plants.
The order is for slightly more than 400 16-liter diesel engines, with the remaining volume distributed evenly between seven- and 10-liter diesel engines. Delivery of the engines, all of which will be manufactured at the Volvo engine plant in Skövde, Sweden, will take place during the autumn of 2002.
Saudi Arabia is one of the Volvo Penta’s largest individual markets for industrial engines. This latest order consolidates the company’s growth as a supplier of industrial engines in recent years. Volvo Penta has been a supplier of drive systems for marine applications for several years but the company has also noted strong growth in the market for industrial engines in more recent years.
In June 2002, Volvo Car International President Bengt Ovlinger visited the kingdom, aspart of the Swedish company’s new international strategy, investing five billion dollars over the next five years to boost its worldwide production capacity by 50 percent.
During the past five years, the value of Volvo Penta’s total sales has doubled at the same time as the company’s profitability has sharply improved. Volvo Penta’s sales for the first six months of the year amounted SEK4.2 billion and operating income to SEK 371million. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
