Scania AB opened a new THB800m (US$26m) heavy commercial vehicle assembly plant in Thailand at the end of last week, as the Swedish company looks to expand its presence in the regions truck and bus markets.
The new factory is located in the Bangkok Free Trade Zone in Samut Prakan province, designated for truck cab manufacture and assembly of complete truck and bus chassis for sale locally and for export across the region.
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Scania Siam managing director, Stefan Dorski expects 2019 to be a watershed year for the company in Thailand with business expected to increase significantly as a result of this latest investment.
The country's high import tariffs mean local assembly is essential to gain a significant presence.
Scania sold 506 trucks and buses in Thailand last year and is targeting over 700 sales in 2019, helped by the launch of a new generation of Euro 6-compliant trucks fitted with more fuel efficient powertrains.
A new R&D centre has also been built on the same site as the new plant which should help the company respond more quickly to local and regional customer requirements.
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By GlobalDataDorski said the main reasons for choosing Thailand as a regional production hub were the country's large domestic market, its well established component supplier base and access to experienced automotive industry workers.
A new company has been established, Scania Group Thailand, to oversee all of the truck maker's operations in the country including a new regional headquarters established in Bangkok to support distributors in Asia and Oceania.
Scania Group Thailand is a fully cross functional operation, according to the company, consisting of employees from production and logistics, R&D, purchasing and sales and marketing operations.
