Sweden's Scania makes €2 billion China bet with new factory, eyeing Asian growth
Swedish truck maker Scania will launch a €2 billion (US$2.28 billion) Chinese production hub in October, its third global manufacturing base alongside facilities in Sweden and Brazil, according to CEO Christian Levin.
The new factory in Rugao, in China's eastern Jiangsu province, will eventually reach a production capacity of 50,000 vehicles a year – nearly double what Scania's Brazilian plant produced in 2024. It would also boost demand for parts made in South America, said Levin, who also runs group Traton, which includes the brands Scania, Man, International, and Volkswagen Truck & Bus.
Setting up in the Chinese market also gives Scania access to the next generation of transport technology in China.
'We want to tap into that,' he said. 'We want to be part of the ecosystem. We want to be close to the competition.'
Scania is also kicking off a new four-year investment cycle in Brazil, which became its second hub after Sweden in the late 1950s, with about US$350 million of capital spending at its local hub, based in Sao Paulo state, by 2028. Part of the investment is going to initiatives concerning clean transport, including electrification.
With its main production hubs in Europe and South America offering the same products in different geographies, Scania has been able to expand its presence in several parts of the world.
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