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Scania to adjust cab production structure in Oskarshamn – 200 employees receiving redundancy notices

The changeover and phase-in of the cabs for Scania’s new truck range at the Oskarshamn, Sweden production unit has now been completed.

“This has gone smoothly,” says Stefan Palmgren, plant manager at Scania in Oskarshamn. “We have achieved significant improvements, including shorter assembly times.” 

At the same time, production of double cab ranges is ceasing, since the manufacture of cabs for Scania’s 4-series has now ended in Europe.

This is the background to Scania’s issuance of redundancy notices to 200 employees at the Oskarshamn cab plant due to unavailability of work.  Employee co-determination negotiations have been initiated.

Besides the 200 who are receiving redundancy notices, Scania is not renewing the contracts of those employees who were recruited on a temporary basis to secure the changeover. This adjustment will be completed during the second half of 2005.

“The steps we are now taking will enable us to improve productivity, which is necessary in order to strengthen our long-term competitiveness and further develop our operations in Oskarshamn,” Mr Palmgren says.

“In the long term, a productivity improvement of 6-8 percent annually is required at our production units in Sweden to remain competitive,” says Per Hallberg, a member of Scania’s Executive Board.

During the past five years, Scania has concentrated its European cab production at Oskarshamn and made capacity-raising investments of about SEK 1 billion, including a new environmentally adapted paintshop and increased capacity in the body workshop. All capacity installations have now been completed.

For further information, please contact:

• Stefan Palmgren, Scania Oskarshamn, tel. +46 491 7654 10

• Hans-Åke Danielsson, Press Manager, tel +46 8 5538 5662

• Gunnar Boman, Corporate Relations, tel +46 8 5538 9510

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 29,100 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2003, sales totalled SEK 50.5 billion and income after financial items was SEK 4.6 billion. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania’s vehicles are sold outside Sweden.

[N05004EN] Gunnar Boman