The newly established Scania subsidiary company, Scania Siam, is taking over the distributorship for Thailand starting 1 October.
The earlier distributor and business partner Forefront International, that is Scania’s importer in Taiwan and China including Hong Kong and Macau, will be a minority shareholder in Scania Siam.
“We think the time has come to change the growing business operations in Thailand to our own management,” says Jan Jarlhage, the new Managing Director of Scania Siam and previously Managing Director of Scania’s subsidiary company Scania South Africa.
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Scania Siam was developed within Scania Trade Development which is Scania’s company for the new establishment of companies in developing markets, and will shortly be moving into newly renovated premises close to the motorway between Bangkok and the International Airport Don Muang. Besides being the distribution centre, the new plant will also be one of the most important service points in the Bangkok area. The Scania Service School and spare parts stores will also be located here.
“Scania Siam will take over all the existing personnel,” says Jan Jarlhage. “The next thing on our agenda is to plan for an expansion of our operations outside the Bangkok region. An investment decision has also been taken to develop local assembly in Thailand in the future.”
The fact that Forefront becomes a minority shareholder in Scania Siam is seen positively: “Our co-operation with them over the years has been excellent and their knowledge about local conditions in the company is valuable to Scania Siam,” Jan Jarlhage emphasises.
Scania is the largest European import brand in a number of markets in South East Asia. After the financial crisis reached its lowest point, Scania’s business in the area is now growing again and Scania also took over recently the role of distributor in Malaysia under its own management.
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By GlobalDataScania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 25,800 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 1999, turnover totalled SEK 47,100 million and the result after net interest income/expense was SEK 4,500 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania’s vehicles are sold outside Sweden.
