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Scania to incorporate Luleå production unit

Scania is to incorporate its Luleå production unit as an autonomous company. Current plant manager Peter Norman has been proposed as managing director of the new company, will be a wholly-owned subsidiary of Scania. Negotiations with the unit’s employee organisations commenced today.

The Luleå production company manufactures frame components, such as side members, bumpers and rear axle housings for Scania’s European production operations. It is envisaged that the new company will become one of the leading market suppliers of components of this type.

"As an autonomous company, we will have a more clearly defined responsibility for our own costs and revenue. We will be able to match ourselves against suppliers of similar products and compete on the open market under new conditions," comments Peter Norman.

"Given higher volumes, we will be able to cut our costs and improve our competitiveness," declares Mr. Norman, noting that the plant is equipped with an efficient production apparatus with the capacity to supply more customers than Scania.

Scania’s Luleå plant commenced operations in 1968 and currently employs 675 people. All personnel will be offered employment by the new company, which is expected to be established by the end of this year.

For further information, please contact Ulf Söderström, Public Relations Manager, Scania, tel. +46-8-553 810 44 or Peter Norman, Plant Manager, Luleå, tel. +46-920-76600.