Scania Expands Global Reach with New Industrial Hub in China

Scania, the renowned Swedish manufacturer, has recently made a historic advancement in its operations by inaugurating a third global industrial hub located in Rugao, Jiangsu Province, China. This development marks a significant milestone in Scania’s 134-year journey and represents one of the company's largest investments to date, promising to reshape its standing in the global automotive market.

The new industrial facility spans an impressive 800,000 square meters and boasts a licensed production capacity of 50,000 vehicles annually. It is strategically designed to cater not only to the burgeoning Chinese market but also selected export markets throughout Asia and beyond. In this endeavor, Scania is set to create approximately 3,000 local jobs and has committed a total investment of 2 billion euros to this ambitious project.

A groundbreaking accomplishment that underscores Scania's deep commitment to the Chinese market is that it has become the first western original equipment manufacturer (OEM) to obtain a full production license for a wholly owned truck plant in China.

In terms of sustainability, the Rugao facility is set to operate predominantly using renewable energy, such as locally produced biogas and certified green electricity. These initiatives are pivotal in Scania's overarching decarbonization goals, contributing directly to their Scope 1 and 2 emissions reduction targets. Ruthger de Vries, President of Scania Industrial Operations Asia, emphasizes, “Sustainability is integrated into every facet of our new factory in Rugao, from energy sourcing to waste management. This project transcends truck manufacturing; it aims to set a new benchmark for efficient and sustainable industrial operations.”

For over six decades, Scania has established its presence within the Chinese commercial vehicle sector, a market recognized as the largest globally and a hub for innovation in transport technology, connectivity, autonomy, and electrification. This new hub, coupled with the research and development centers located in Rugao and Shanghai, signifies Scania's intention to deepen its footprint in the region while fostering productive collaborations with local partners.

“Establishing our presence in Rugao goes beyond mere manufacturing; it integrates into China’s vibrant innovation ecosystem and propels Scania’s development forward,” explains Christian Levin, President and CEO of Scania and TRATON Group. He adds, “By producing and innovating on local soil, we can harness China’s dynamism and creativity, enhancing our global capabilities and hastening the transition towards sustainable transportation.”

To cater to the diverse needs of the Chinese market, Scania has introduced a dual commercial offering. The Rugao facility is envisioned to align with the TRATON Modular System (TMS), allowing Scania and its partners to efficiently scale, tailor, and innovate their product lines in response to varying market demands. This system is key to the proposed integration of unique Chinese technologies and applications that will bolster both local and international competitiveness.

The company plans to offer two distinct commercial options: one that adheres to Scania's global standards, customizable for rigorous applications available for both tractors and rigid designs, accompanied by a comprehensive service portfolio. The second offering is the newly developed “NEXT ERA” series, specifically tailored for China’s competitive long-haul and high-volume segments. This innovative product line reflects a new chapter in Scania’s commercial strategy, designed to seamlessly integrate with China’s digital ecosystem while sharing a foundational essence with the TRATON Modular System. The NEXT ERA series is particularly focused on high-volume transport applications, promoting both efficiency and environmental responsibility.

Production in Rugao is projected to commence towards the end of 2025, with the NEXT ERA product line set to launch in the first half of 2026, showcasing Scania’s commitment to innovation and sustainability. As part of its dedication to transparency and public engagement, Scania's inauguration event will be broadcasted on their official YouTube channel, offering insights into this transformative project.

Overall, Scania’s new global industrial hub not only reinforces its commitment to innovation and sustainability but also enhances its capability to serve the growing demands of the Chinese market and beyond. With these strategic moves, Scania is poised to lead with its vision of sustainable transportation in the coming decades.