Scania in Chinese Market Drive With Plans for New Production Hub -- Update
24 Novembro 2020 - 12:03PM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Swedish truck maker Scania said Tuesday that it is
growing its footprint in China by establishing a wholly-owned truck
production facility.
Scania, owned by Volkswagen AG subsidiary Traton SE, said it has
decided to expand in China to benefit from the country's status as
the world's largest market for commercial vehicles, which currently
accounts for 40% of global sales.
The Chinese market is dominated by national manufacturers, but a
move by the country to increase competition by opening up for
foreign-owned companies has prompted Scania's decision to invest in
the country, it added.
"Our expansion in China will be made step by step and in pace
with the positive development of market conditions and the
increasing demand for modern vehicles with a higher technology
content that will follow," Scania Chief Executive Henrik Henriksson
said.
"Until the end of the 2020s, we will make significant
investments in order to benefit from this development as well as to
establish China as the third leg in our global production
structure."
The company's production hubs are currently based in Europe and
Latin America, with a site also in Thailand.
Scania said the establishment of its own industrial operations
in China has been made possible through its acquisition of Nantong
Gaokai Auto Manufacturing Ltd. and it is aiming for sales in China
at the end of the 2020s of at least the same volume as that of its
current single largest market, Brazil.
"Increasing the presence in the Chinese market is crucial for
Scania and the Traton Group's global growth. Our operations in the
country will gradually be expanded and developed into a full-scale
unit in Scania's global production and supplier structure," Mr.
Henriksson added.
The new facility is in Rugao, 150 km northwest of Shanghai, and
will start production in early 2022.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 24, 2020 09:48 ET (14:48 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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