As a step in further streamlining the Volvo Group towards commercial vehicles, AB Volvo last week said it has initiated a process aimed at divesting Volvo Aero.

“One of the prerequisites for a transaction being implemented is that a divestment could enable Volvo Aero to enter into a structure that would enhance the company’s opportunities for further development in its sector,” said Volvo CEO Olof Persson. “Another requirement is of course that we are paid a reasonable price. We are currently conducting talks with a number of potential buyers, but these are still at an early stage and no definite decisions have been made.”

Volvo Aero is a leading manufacturer of aerospace components and its products are found in more than 90 percent of the world’s large civil aircraft.

Since beginning its initiative to streamline the Volvo Group towards commercial vehicles at the end of the 1990s, in conjunction with the divestment of Volvo Car Corp., the group has expanded to become one of the world’s leading manufacturers of heavy duty trucks, buses, construction equipment, industrial and marine engines and heavy-duty diesel engines.

The Volvo Group is a global manufacturer of trucks, buses and construction equipment, drive systems for marine and industrial applications and aerospace components. It is a publicly held company headquartered in Göteborg, Sweden.