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Scania and Siemens plan the formation of a support and maintenance company

Scania and Siemens are planning the formation of a joint company specialising in the service, operation and maintenance of buildings and machines, as well as tool production. Earlier today, the companies signed a letter of intent on merging parts of the support unit Scania Partner AB with parts of Siemens AB. The new company will have 400 employees and a turnover of 650 million Swedish kronor a year.

"The new company has the potential for increasing its turnover many times over during the coming three-year period," emphasises Sören Swärd, President of Siemens AB. "Future expansion will take place primarily by establishing service units beside Scania's production plants and the Siemens facilities in Sweden and abroad."

The purpose of the joint venture is to give the new company the best possible preconditions for expanding on the fast-growing market for service and industrial maintenance.

"In order to be able to expand and widen our customer base both nationally and internationally, we need to cooperate with a company that has support and maintenance as part of its core operations," says Stellan Hahlin, Managing Director of Scania Partner AB. "We see considerable potential for cooperation with Siemens."

Parts of Scania Partner AB, whose operations are centred on Södertälje and Falun, will form the basis for the new company, which will be integrated with the Siemens operations in Södertälje, Falun, Avesta, Hedemora and Borlänge. About 350 people are affected within Scania and another 50 at Siemens. All will be offered employment in the new company.

For further information, please contact Ulf Söderström on telephone number +46 8-553 810 44 or +46 70 680 95 95.

For Siemens Robert Müller, tfn +46 8-728 10 15 or +46 70 728 10 15.

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 the result after net interest income/expense was 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.