Swedish truck manufacturer Scania, a part of VW Group’s commercial vehicle unit – the Traton Group – has opened its third global industrial hub in China.
The site, covering an area of 800,000m², is located in Rugao, Jiangsu Province.
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The project represents a €2bn (about $2.3bn) investment for the company and will employ 3,000 people.
Authorised to produce up to 50,000 vehicles annually, the facility is intended to serve customers in China along with targeted export destinations throughout Asia and other regions.
Scania has become the inaugural western original equipment manufacturer (OEM) to obtain full approval to operate a fully owned truck plant in China.
The new industrial hub is intended to run predominantly on renewable energy, drawing power from locally generated biogas and certified green electricity.
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By GlobalDataRuthger de Vries, president of Scania industrial operations Asia, said: “Sustainability is built into every part of our new factory in Rugao: from energy sourcing to waste management.”
The new hub forms part of Scania’s longer-standing presence in China, spanning 60 years.
The investment includes research and development (R&D) centres in Rugao and Shanghai, which bolsters Scania’s capacity to build solutions together with Chinese partners.
Scania and Traton Group president and CEO Christian Levin said: “Our establishment in Rugao is more than a factory; it will be part of China’s dynamic innovation landscape and fuel Scania’s own development.
“By also producing and innovating locally, we can tap into China’s speed and creativity, strengthen our global capabilities and accelerate the shift towards sustainable transport.”
The Rugao facility has been built to align with the TRATON Modular System (TMS).
This allows Scania and other Traton Group brands to expand, customise, and innovate across different markets and product lines, while also integrating China-based solutions and applications.
Scania outlined two commercial offerings planned for the hub.
The first is a global-standard Scania range, adaptable for heavy-duty uses such as tractors and rigids, supported by a wide service portfolio.
The second is Next Era, a tractor family designed exclusively for China’s long-haul and high-volume transport segment.
The NEXT ERA line is tailored for high-volume transport and is fully integrated with the local digital ecosystem.
Scania plans to start deliveries from Rugao in late 2025, with the Next Era product launch scheduled for the first half of 2026.
In August, Scania announced it will undertake a Europe-wide electric truck roadshow.
