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Scania breaks into Indonesian mining industry

Scania has sold its first trucks to the expanding Indonesian coalmining industry. United Tractors, the company’s recently appointed distributor, has signed a contract to supply a total of 120 heavy Scania trucks to the Indonesian mining company, Gunung Bayan. The first 70 vehicles will be delivered this year, while the remaining 50 are scheduled for delivery during the first half of 2006.

The agreement with Gunung Bayan includes a complete service and maintenance contract under which United Tractors will guarantee fleet uptime for a fixed per-kilometre fee. 

All of the trucks will be four-axle types powered by Scania’s 420-hp,12-litre engine. Weighing 48 tonnes, including payload, the vehicles will be built for off-road service. Each truck will cover an average of 700 km per 24 hours.  

Gunung Bayan operates around the clock, seven days a week, and the company, which is currently operating two mines, is shortly to open a further three. The Indonesian coal market is currently undergoing a boom and the price per ton has soared to USD55 from less than half that figure in less than two years.

Gunung Bayan’s decision to replace its existing Japanese fleet with Scania trucks will mean a 50% increase in payload per vehicle, from 20 to just over 30 tonnes.  

In a comment on the deal, Gunung Bayan notes that United Tractors is already a strong partner to the company as a supplier of heavy equipment, such as excavators, and that the Scania contract is a move to build on that cooperation.

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations is comprised of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production plants are located in Europeand South America, with facilities for the global exchange of both components and finished vehicles. In 2004, invoiced sales totalled SEK56.7 billion and net income amounted to SEK4.1 billion. 

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[N05017EN] Bo Östlund