Scania on Wednesday agreed to buy the General Motors Powertrain Swedish production plant as part of its effort to boost manufacturing capacity to 100,000 vehicles a year by 2010, a report said.

"This acquisition will enable Scania to increase engine component production capacity and to start production of injection systems for engines," the group said in a statement cited by Reuters.

GM Powertrain is located in Sodertalje, a town to the south of the Swedish capital, where Scania is also based, the report said.

According to Reuters, Scania gave no financial details of the transaction but said it would offer jobs to all 115 employees at GM Powertrain which currently makes about 25,000 engines a year for the Saab 9-5 car line.