Volvo combine
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THE NEW Nordic Volvo company came a step closer last week when AB Volvo and the Norwegian Government signed their proposed accord in Oslo.
Volvo (Svenskt-Norskt) Aktiebolag has been created as a new joint holding company for the new group's overall activities. It will be based at Gothenburg and will be operated in line with Swedish law.
Separate concerns operating beneath the new parent will be 'Svenska AB Volvo (the Swedish shareholding company) and Norsk Volvo A/S which will own the Norwegian shares in the group.
A major by-product of the Swedish-Norwegian deal is the creation of Volvo Petroleum which has been allotted shares in three high potential oil blocks in the Norwegian sector of the North Sea.
Norway's aluminium and petrochemical industries will be much more accessible to the new group, and Volvo aims to make more use of light metals and plastics in. its productsain future.
Norway will also gain a foothold in the automotive industry through the development of the car component industry and other Volvo-based activities in Norway.