Scania's distributor in Dubai in the United Arab Emirates, Al Shirawi Enterprises (L.L.C.), has sold a further 120 city buses to Dubai Municipality. The new order follows last summer's delivery of 119 buses.

Scania says that it will utilise its global production system to manufacture bus chassis fitted with Brazilian Marcopolo bodies, utilising spare capacity in Scania's factory in Sao Paolo during the second half of 2002.

Scania do Brasil announced last month that it was postponing the planned dismissal of 70 workers. Scania said that it had postponed the dismissals until November to give the Brazilian automotive market a chance to revive and boost production. The Dubai deal will help to utilise some of the unused Brazilian capacity.

Including a previous sale of 30 buses, Dubai Municipality has ordered a total of 269 Scania buses for its growing urban public-transport operations.

"The new order reinforces our leading position as a supplier of city buses in this region," said Anders Liss, Area Sales Manager at Scania and the person responsible for Scania's operations in the Gulf area.

The buses are built on Scania's two-axle L94 chassis and are powered by Swedish-made engines. After the bodies are fitted, the finished buses will be transported from Brazil directly to Dubai.