Lovejoy in joint venture … Volvo, ArvinMeritor in Axle deal … Iveco to supply engines to Komatsu - international report

Diesel Progress North American Edition, Dec, 2003 by Mike Mercer

Lovejoy Inc., announced a significant international expansion into the hydraulic component market as the result of a joint venture entered into with Rahmer & Jansen GmbH, Werdohl, Germany. Rahmer & Jansen concentrates 95 percent of its business in hydraulic components and is the second largest supplier of flexible shaft couplings to this market. This joint venture will operate under the title of Raja-Lovejoy GmbH. The company will continue to produce and sell hydraulic components and flexible shaft couplings such as Spidex and Dentex. Raja-Lovejoy GmbH will operate from the present Werdohl.

Volvo and ArvinMeritor have signed a memorandum of understanding under which ArvinMeritor will supply driven arid nondriven axles for Volvo's European truck and bus products. Final agreements on the strategic alliance will be made during first quarter 2004. The Volvo Group's axle plant in St. Priest and its foundry in Venissieux, which has specialized in axle housings, would be structured into two joint ventures. ArvinMeritor would acquire the majority ownership in these joint ventures.

The manufacturing of nondriven axles at Volvos transmission plant in Koping would be outsourced to ArvinMeritor, which also would acquire all related assets. This would enable Koping to concentrate on its core business becoming a Volvo Group global supplier of transmissions. The finalization of the strategic alliance is conditional on approval from regulatory authorities and union representatives.

The Iveco Engine Business Unit has signed an agreement to supply engines to Komatsu Utility Europe (KUE) to equip the new WH series of telescopic handlers. The partnership involves the supply of the new generation of Iveco NEF engines specially personalized for the specific application of KUE. KUE and Iveco EBU are also discussing enlargement of this partnership to supply engines for other KUE applications.

Trelleborg, based in Sweden, has completed the acquisition of the Smiths precision seal business. Smiths precision seal business is comprised of several companies operating under the umbrella of Polymer Sealing Solutions group (PSS). PSS develops, manufactures and markets security-critical polymer-based precision seals and systems. PSS operates primarily within four market segments: industrial applications (Busak Shamban), the automotive industry (Dowry Auto), the aerospace industry (Shamban) and pipe seals (Forsheda). PSS will be integrated as Trelleborg Scaling Solutions following this acquisition. The Trelleborg Group has annual sales of approximately $2.9 billion, with about 21,000 employees in 40 countries.

Dana Corp. announced that it has been selected by Volvo Powertrain to supply Spicer driveshaft assemblies for Volvo Trucks, Renault Trucks, Volvo Bus Corp. and Volvo Construction Equipment products in the European market. The five-year supply agreement, which runs through 2007, provides that Dana will supply Spicer Compact 2000, Spicer PEP, Spicer SPL and Spicer Italcardano wing-style driveshafts.

Kalmar's goal to develop a global platform for terminal tractors has received a significant boost with the first terminal tractors rolling out of its Shanghai assembly plant. The plant, which began operations this summer, celebrated the completion of its first terminal tractor, for delivery to Shanghai Nice Talent International Container Freight Station & Transportation Co. Ltd. Meanwhile, a further order for 10 units has been received from P&O Ports affiliate, Laem Chabang International Terminal in Thailand.

Construction machinery maker Komatsu Ltd. has secured orders for about 250 heavy machinery units from Russian general contractors involved in crude oil and natural gas excavation projects. About a third of the order is for dozers, pipe laying machines and oil-pressured shovels that will be part of the Sakhalin 1 and 2 oil and gas excavation projects in Russia's Far East. Delivery is due February. Komatsu will also supply a total of 149 dozers, pipe-laying machines and off-pressured shovels for oil and natural gas projects in western Siberia.

INFORMATION FOR THIS REPORT IS TAKEN FROM INDUSTRY SOURCES AND DIESEL PROGRESS INTERNATIONAL EDITION. FOR UP-TO-THE-MINUTE INTERNATIONAL NEWS, AS WELL AS NEW PRODUCTS AND TECHNOLOGY VISIT THE SOURCE--DIESEL PROGRESS ON-LINE

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