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13 June 2006 14:00 CET

Agreement will provide at least 125 jobs in Sibbhult

The newly established company Sibbhultsverken AB will supply gearbox components and take over portions of Scania’s existing production in Sibbhult, Sweden. The new company will begin its operations during the second half of 2007 and initially have at least 125 employees.

“It is a positive step that our efforts to find replacement jobs in Sibbhult have now yielded results,” says Per Hallberg, Scania’s Head of Production and Procurement. “This shows that we take responsibility for our employees and are also safeguarding jobs in the Municipality of Östra Göinge.

“The owners of Sibbhultsverken have extensive experience as suppliers to Scania and other vehicle manufacturers. We will thus gain a quality-conscious, long-term supplier of gearbox components,” Mr Hallberg says.

The new owners’ operations also include Konga Bruk, a nearby supplier to the vehicle industry. Among its customers are Scania, Volvo and Renault.

“Besides being a supplier to Scania, in our Sibbhult operations we will also establish production for other customers,” says Lars-Åke Skoog, one of the owners of the new company.

The new operations will include parts for gearboxes and retarders, as well as foundry products made of both steel and aluminium.

“We will be investing in new technology, and our objective is that new customers and increased volume will allow an international expansion. We will be co-ordinating marketing, sales and technological development with the existing operations at Konga Bruk,” Mr Skoog says.

For further information, please contact:

- Gunnar Boman, Scania, tel +46 8 553 895 10
- Lars-Åke Skoog, Sibbhultsverken AB, mobile tel +46 70 636 36 55

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production plants are located in Europe and South America, with facilities for the global exchange of both components and finished vehicles. In 2005, revenue totalled SEK 63.3 billion and net income amounted to SEK 4.7 billion. Scania’s press releases are available on the Internet at www.scania.com.