Volvo Aero has acquired Linköping, Sweden-based composite company Applied Composites AB (ACAB) with the intention of using its technology to develop and manufacture lightweight aircraft engine components made of composite materials. As a result of the acquisition, Volvo Aero will invest SEK 50 million in research and development within the area of composites through June 2009. Volvo Aero intends to immediately establish a new operation that will develop and manufacture certain selected aircraft components in composite materials. In addition to being lighter, these components are expected to reduce fuel consumption and in turn lower emissions from the aircraft. Work at the new operation at ACAB was expected to begin immediately.