Released on December 6, 2007

Ferrous metalcaster Teksid, Turin, Italy, recently expanded its existing relationship with Volvo when it signed a contract to produce two new lines of iron engine cylinder blocks.

The contract to supply Volvo the new MD11 and MD13 iron engine blocks was signed in Monclova, Mexico, by the president and CEO of Teksid Nafta/Mercosul Operation, Giacomo Regaldo, and the purchasing representative of Volvo Sweden, Stefan Johanson.

The new blocks will be manufactured by Teksid Hierro de Mexico, joining the products produced for Volvo Brazil by Teksid Brazil. According to estimates by parties involved in the transaction, the contract will add another 12,000 tons of castings per year to the relationship between the two companies.

“We are extremely excited with the success of the negotiations,” Regaldo said. “This new endeavor will reinforce and strengthen the existing partnership between Teksid and Volvo.”

Based on current market conditions, Teksid expects to begin supplying the products in early 2009.