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Scania takes over operations in Latvia: Scania acquires Auto Skan SIA in Riga

Scania acquires Auto Skan SIA in Riga

As part of its ongoing policy of expansion in the Baltic region, Scania has acquired its Latvian distributor Auto Skan SIA from G. Persson Gruppen AB of Uppsala, Sweden. The company's Latvian operations are handled through recently-founded Scania Trade Development.

This acquisition enhances Scania's position on the Latvian market:

"The markets in the Baltic States are a vital part of our local operations. During the 1990s, the various distributors there gradually boosted Scania's presence by extending both the dealer network and, not least, service facilities in all three Baltic countries," says Anders Spåre, Managing Director of Scania Trade Development.

Last year, G. Persson Gruppen AB inaugurated an entirely new distributor facility in Riga via its subsidiary Auto Skan SIA – an investment of 28 million kronor. Apart from Auto Skan, G. Persson Gruppen AB operates dealership companies for Scania, Volkswagen, Audi, Skoda and Seat in Uppsala.

"By bringing operations in-house, we are emphasising Scania's firm intention to continue focusing on these markets," says Anders Spåre.

Ervins Arents, who stays on as Managing Director of Auto Skan, comments on the latest developments:

"We are firmly convinced that our customers will appreciate Scania's increased involvement in and dedication to Latvia."

Scania currently has a market share of about 20 per cent in Latvia, where the total market in 1999 amounted to about 200 heavy vehicles.

Auto Skan SIA started operating in Latvia in 1993. In addition to the main facility in Riga, the company operates contract workshops in Daugavpils and Valmiera.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 25,800 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 1999, turnover totalled SEK 47,100 million and income after financial items SEK 4,500 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania’s vehicles are sold outside Sweden.