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Scania becomes new supplier to Austrian roads authorities

In the face of tough competition, Scania Österreich, Scania's wholly-owned Austrian subsidiary, has secured an order to supply 67 snowplough vehicles to the country's roads authorities. Worth approximately SEK 50 million, the contract includes an option under which the purchasers may order a further 70 vehicles before the end of 1999.

The order was placed by the Austrian Ministry of Trade and Commerce on behalf of the country's provincial administrations and roads authorities which, at present, operate a combined fleet of 1,400 vehicles and purchase 50-100 new vehicles annually. Until now, these have been supplied exclusively by Steyr or ÖAF/MAN.

"In strategic terms, therefore, this is an extremely important deal for us," comments

Håkan Sundström, MD of Scania Österreich. "It gives us a chance to really show what

we can do as a supplier and a partner."

At the same time, the order places pressure on Scania's production system:

"The customers need the vehicles for the winter and we have undertaken to ensure that they are delivered in time," explains Mr. Sundström.

The vehicles will be produced at Scania's Zwolle plant in the Netherlands. However, comprehensive work will be carried out locally in Austria to equip the vehicles and to build the superstructures required before they can enter service.

For further information, please contact Bo Östlund, Corporate Communication, tel. +46-8-553 828 46 or +46-70-543 81 42 (mobile).