AB Volvo extends agreement with Coor Service Management

AB Volvo has chosen Coor Service Management as its main IFM (integrated facilities management) provider in a large-scale tender for workplace and property services. The new agreement runs for three years and has a total value of some SEK 400 m.

Coor Service Management has been delivering and developing IFM services close to operations for AB Volvo since 2005. Ahead of the expiry of its agreement on 30 November 2009, Volvo conducted a major tendering process, selecting Coor as its main supplier. The new agreement means Coor delivering and developing workplace and property services at a number of Volvo's offices and production facilities in Skövde, Gothenburg and Trollhättan, southern Sweden. The services include property services, reception, mail and cleaning.

"This is the first time these services have been up for tender, and we're really delighted that Volvo has continued to entrust is to this extent," commented Jan Carreman, Business Area Manager of Coor Service Management, "we view this as evidence that we're offering good and competitive service provision, and we look forward to continue developing it to support Volvo's business optimally."

The new agreement means Coor will have to adapt its operations to smaller-scale provision than previously, with implications including the company issuing redundancy notices corresponding to 280 positions in early-May. After concluding discussions with the unions, a total of 238 people were laid off, 88 in Gothenburg, 85 in Trollhättan, 37 in Skövde and 28 in Eskilstuna.

"Clearly, it's really unfortunate that so many people have to leave Coor but we've got to adapt our resources and provision to the conditions of the agreements we reach. It's a tough time for the affected staff, and we're doing what we can to support them as well as possible," continued Mr. Carreman.

For more information, please contact:

Jan Carreman Business Area Manager +46 (0)8 553 951 70

Bengt Håkansson Deputy CEO, Coor Sweden +46 (0)8 553 966 29

Åsvor Brynnel Communication Manager + 46 (0)8 553 954 04