Scania moves production to Södertälje

Scania has concluded co-determination negotiations on moving the production of axles and gearboxes now performed at the company’s units in Falun and Sibbhult to Södertälje, Sweden. Scania will also concentrate its European parts management in Belgium. All affected employees will be offered continued employment at Scania. Meanwhile the company is working to find replacement industries for the affected communities.

“We are acting now in order to maintain or long term competitiveness and to retain jobs in Sweden,” says Per Hallberg, Scania’s Head of Production and Procurement. Moving axle and gearbox production to Södertälje means that Scania will have production and product development in close proximity to each other, which will lead to both quality and cost benefits. “Components and parts that are not strategic may be manufactured by others in the future. Here we have great hopes of finding interested parties willing to take over part of our operations in both Falun and Sibbhult,” Mr Hallberg says. Moving parts management to Belgium will yield a number of benefits. Proximity to most of Scania’s customers and suppliers will mean higher availability and lower costs. In Södertälje, Scania will retain a regional distribution centre for the Nordic markets. Moving these operations will be completed within a three-year period, and the annual cost saving is estimated at about SEK 300 m. For further information, please contact - Hans-Åke Danielsson, Press Manager, mobile +46 70 346 8811 - Cecilia Edström, Senior Vice President Corporate Relations, mobile +46 70 588 3557 - Gunnar Boman, Manager Corporate Communications, mobile +46 70 550 8606 Press conferences will be held today at 16;00 CET at Scania’s plants in Falun and Sibbhult.