Volvo Aero, Rolls-Royce Sign Deal

Sweden's Volvo AB said Tuesday its aircraft unit has signed a contract with Rolls-Royce to develop an engine component for the Airbus A350XWB aircraft.

STOCKHOLM, Sweden (AP) -- Sweden's Volvo AB said Tuesday its aircraft unit, Volvo Aero, has signed a contract with Rolls-Royce to develop an engine component for the Airbus A350XWB aircraft.

The bus and truck maker said it expects the contract will be worth around 40 billion kronor ($6.7 billion) over 40 years.

Under the agreement, Volvo will develop and manufacture the intermediate compressor case for the Trent XWB engine in Trollhattan, Sweden.

It said the Trent XWB program has already generated 362 firm aircraft orders.

The A350XWB is scheduled to enter service in 2013.

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