This is an important step in Scania's growth strategy in China and the starting point for major investments in Asia. The company will build its own truck manufacturing facility in Rugao, Jiangsu Province (150 km northwest of Shanghai). The start of serial production is planned for the beginning of 2022.

- Our presence in China will progress step by step with the positive development of market conditions and the growing demand for modern vehicles with a higher degree of technological advancement. By the end of the second decade, we will make significant investments to take advantage of this development and make China the third pillar of our global production structure, emphasizes Henrik Henriksson, Scania President and CEO.

The decision to make such an investment was accelerated by the transformation of the Chinese economic system towards a more open system based on a market economy.

In order to increase competition, China is now opening up to entities with foreign capital - thereby contributing to the implementation of valuable initiatives in the field of sustainable development.

- Increasing the presence in the Chinese market is crucial for the development of Scania and the TRATON Group worldwide. Our operations in this country will be gradually expanded and transformed into a full-fledged unit within Scania's global production and supply structure. The goal is not only to make China the third pillar of our industry, but also to create a regional sales center for other Asian markets, adds Henrik Henriksson.

Scania's investments in China also include research and development.

"This will strengthen Scania's international competitive position and ability to remain a leader in sustainable transport as our presence provides increased access to leading technology and expertise in areas such as electric and autonomous vehicles," explains Henrik Henriksson.

China is the world's largest single market for commercial vehicles - now accounting for 40% of world sale. It is true that the market is dominated by domestic producers, but the demand for modern vehicles with higher technological advancement, better performance and greater availability increases with the demand for more efficient logistics and sustainable transport. In China, Scania's offer of biofuel combustion engine technology as well as electric technologies is performing well.
- We aim to ensure that, by the end of the second decade, sales in China will be at least the same as in our largest single market today, i.e. in Brazil, declares Henrik Henriksson.

Scania's creation of its own industrial unit in China was made possible by the acquisition of Nantong Gaokai Auto Manufacturing Ltd. The company meets Scania's requirements for, inter alia, working conditions, environmental protection and quality monitoring systems at all stages of the supply chain, as well as the ability to provide the highest quality customer service.

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