Swedish group Volvo is planning to sell its aerospace engine component business to streamline the group towards commercial vehicles.

Volvo is in talks with a number of potential buyers for the aero business.

Volvo CEO Olof Persson said: "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."

Volvo Aero develops and manufactures components for aircraft, rocket and gas turbine engines, and has a service and maintenance business.

In 2010, Volvo Aero’s net sales amounted to Skr7.7bn ($1.1bn), or 2.9% of Volvo’s total revenue.

Volvo is expected to finalise the deal in mid-2012.