PRESSRELEASE | All press releases
27 March 2008 8:30 CET
Scania increases presence in Arab markets on the Gulf – will begin delivery of complete vehicles in Dubai
Scania is establishing an industrial facility in Dubai for bodybuilding and equipping complete vehicles. “From here we will deliver high-quality fully built vehicles that are adapted to the requirements and operating conditions that apply in the region,” said Per Hallberg, Scania’s Head of Production and Procurement, at a groundbreaking ceremony today attended by Swedish Crown Princess Victoria and other dignitaries.
The facility will have the capacity for customisation of about 1,400 vehicles per year and is located in a 20,000 square metres industrial site in the expansive Jebel Ali Free Zone in Dubai. Operations will begin late 2008 and will initially encompass vehicles for construction haulage, such as tipper and concrete trucks, but the facility will also be adapted for future bus chassis delivery.
Establishing the plant in Dubai is part of Scania’s strategy to strengthen its position on important growth markets.
“Our collaboration with selected suppliers that are well-established in Arab markets, together with the shorter lead and delivery times provided by the Dubai facility, will greatly benefit our expansion in the region,” Mr Hallberg says.
There is very high demand for heavy trucks and buses in the region due to large investments in infrastructure and new construction − not only in the United Arab Emirates but also in the other Gulf states. The market for heavy trucks is beginning to approach 20,000 per year. Demand for tourist coaches and public transport buses is also increasing.
“Scania’s growth scenario for 2009 and onward also includes increasing our sales in the Gulf states in new segments and gaining market share,” says Klas Dahlberg, Scania’s regional sales director.
Later this year, Scania will also inaugurate a regional centre for sales and service training in Dubai.
“Training and recruitment of personnel is important to enable Scania to increase sales and develop its service market business in the region,” Mr Dahlberg says.
For further information, please contact Hans-Åke Danielsson, Press Manager,
tel. +46 8 8 553 856 62
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 35,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2006, invoiced sales totalled SEK 84.5 billion and the net income amounted to SEK 8.5 billion. Scania press releases are available on the Internet at www.scania.com