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Agreement on 100 jobs in Falun

Scania has signed an agreement with the LEAX Group to take over portions of Scania’s existing production in Falun, Sweden. LEAX will begin operations in Falun during the second half of 2007 and initially have at least 100 employees.

“With this agreement, during the past week we have obtained a total of 225 replacement jobs in Falun and Sibbhult, which is very positive,” says Per Hallberg, Scania’s Head of Production and Procurement. “LEAX is already a Scania supplier today, and given our positive experience of the company, we look forward to expanded collaboration,” Mr Hallberg says. In Falun, LEAX will produce propshafts and machine rear axle parts for Scania’s trucks and buses.“Establishing a presence in Falun opens growth opportunities for us and is a good complement to our other operations in the vehicle component field,” says Roger Berggren, President of LEAX. “Looking ahead, our objective is to add new operations in Falun.”LEAX is a suppler of mechanical and electromechanical products and services to the vehicle industry, among others. Its customers include Scania and Volvo. Scania is also continuing negotiations with other companies in the machining industry with which it previously signed letters of intent for portions of its Falun operations.For further information, please contact :- Gunnar Boman, Scania, mobile phone +46 70 550 8606 - Roger Berggren, LEAX Group, mobile phone +46 70 655 9971