Scania to establish own truck assembly facility in Thailand

Scania to establish own truck assembly facility in Thailand Scania has decided to establish its own local truck and bus assembly facility in Thailand. Acting through Scania Trade Development AB, local subsidiary Scania Thailand Co. Ltd has acquired an 18,000 sq. metre site in Rayong, south-east of Bangkok. The construction time will be an estimated 8-10 months. Scania Trade Development AB is owned by Scania AB. "The Thai market plunged from a peak of about 30,000 commercial vehicles per year in the first six months of 1997 to 2,500 in 1999 as a result of the Asian economic crisis. However, the economy has now turned the corner and we predict a market of approximately 12,000 vehicles per year over the next five-year period," comments Anders Spåre, MD of Scania Development. In the segment where Scania meets competition - heavy vehicles with engines exceeding 330 horsepower - Scania today holds a strong position with a market share of 25 to 30 per cent. The new assembly plant will supply vehicles mainly to the Thai market. However, depending on how the economies of the ASEAN region develop, Thai- built trucks and buses may also be exported to other markets in the region. The new Scania plant will be built at the Eastern Seaboard Industrial Estate in Rayong, 120 kilometres south-east of Bangkok. Many of the world's leading automakers are currently investing in Rayong, which has been dubbed the 'Detroit of the East'. Scania's neighbours will include GM and Ford. The site was purchased from Eastern Seaboard Industrial Estate (Rayong) Co. Ltd. Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 25,800 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 1999, turnover totalled SEK 47,100 million and the result after net interest income/expense was SEK 4,500 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden. Scania press releases are available on the Internet, www.scania.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/26/20000526BIT00610/bit0001.doc http://www.bit.se/bitonline/2000/05/26/20000526BIT00610/bit0002.pdf