Swedish truck manufacturer Scania AB confirmed it is scheduled to begin operations at its new EUR 2 billion production hub in China in the fourth quarter of 2025, according to reports citing the company’s CEO Christian Levin.
Scania, part of the Traton group which also includes brands such as MAN, International and Volkswagen Truck & Bus, currently has two main global manufacturing hubs – Sweden and in Brazil – supplying built-up vehicles and components to world markets.
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The new production hub in Rugao, in China’s Jiangsu province, will ultimately have a production capacity of 50,000 trucks per year. The facility is expected to help lift the brand’s sales in the world’s largest vehicle market and will also export built-up vehicles to other markets in Asia.
Mr Levin, who also heads Traton, expects the new Rugao facility to help the company reduce its delivery times across the Asia-Pacific region. He pointed out that currently “if a customer in Asia wants to buy a Scania, they have to get it from Europe or Brazil, which means a wait of maybe six or seven months.”
Scania’s stronger manufacturing presence in China will also help improve its access to next-generation truck technologies that are available in the country, including zero-emission drivetrains and smart, connected technologies. The CEO confirmed “we want to tap into that. We want to be part of the ecosystem. We want to be close to the competition.”
Scania recently launched a new US$ 350 million investment at its existing operations in Sao Paulo, Brazil, to upgrade its production facilities and introduce clean transportation solutions including electrified powertrains.
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