Scania has concluded negotiations with employees over moving axle and gearbox production from the company’s units in Falun and Sibbhult to Södertälje, Sweden, and may contract out manufacture of ‘non-strategic’ components.
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The truck maker will also concentrate its European parts management in Belgium, it said in a statement.
Scania said all affected employees will be offered continued employment at the company and that it “is working to find replacement industries for the affected communities”.
“We are acting now in order to maintain or long term competitiveness and to retain jobs in Sweden,” said Scania head of production and procurement Per Hallberg in the statement.
Moving axle and gearbox production to Södertälje means that Scania will have production and product development in close proximity to each other, which will lead to both quality and cost benefits, the statement added.
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By GlobalData“Components and parts that are not strategic may be manufactured by others in the future. Here we have great hopes of finding interested parties willing to take over part of our operations in both Falun and Sibbhult,” Hallberg said.
Scania said that moving parts management to Belgium would yield a number of benefits as proximity to most of its customers and suppliers would result in higher availability and lower costs.
It will, however, retain a regional distribution centre for the Nordic markets in Södertälje.
Moving these operations will be completed within a three-year period, and the annual cost saving is estimated at about SEK300m, Scania said.
