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Plan To Put Into Production in 2024 Scania Rugao Manufacturing Base Starts Construction

Jun 11, 2022

On June 10, 2022, Scania held the launching ceremony of the commercial vehicle project and the construction of the Rugao manufacturing base in Rugao, Jiangsu, marking the start of Scania's construction of a modern production facility in Rugao. The site, scheduled to start production in 2024, is Scania's third production site in the world outside Europe and South America.

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In 2020, after the unveiling of the Rugao manufacturing base, Scania began careful planning and preparation, increased the investment scale and amount, and established a systematic, diversified and international project team. Training has also been launched one after another, and its first production engineers have arrived in Sweden in early May 2022 and started training.

In the future, the Rugao manufacturing base will develop and produce traditional internal combustion engine vehicles and new energy vehicles. Products are not only supplied to China, but also exported to overseas markets. Based on Scania's unique modular production system, the site will provide customers with a tailored high-end product portfolio, allowing customers to truly enjoy the benefits of Scania's modularity and provide solutions with more overall operating economy , to further enhance the industry competitiveness of customers. At the same time, the product will meet the most stringent emission standards and fuel consumption limits in the future. With the development of the specialization level of the transportation market, with more than 80% of the localization rate and the application of the latest technologies and processes, compared with traditional imported vehicle products, the vehicle delivery cycle will be greatly shortened.

Christian Levin, CEO of Scania and TRATON Group, said that Scania is full of confidence in the future development of China's transportation and logistics market, and the Chinese market occupies the most important position in Scania Group's strategic market positioning. status.

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Mats Harborn, President of Scania China Group, said: "Since entering China in 1965, Scania, as one of the leaders in the global transportation industry, has continued to introduce new ideas and concepts to the Chinese market. Compliance High-end and high-end products are two obvious trends in the Chinese market today, which makes Scania’s industrial investment in China just at the right time.”

Climate change and the new normal of economic development have made the traditional and stable logistics and transportation industry experience unprecedented changes. As the main logistics equipment for realizing low carbonization, heavy trucks are leading the innovation of cutting-edge products, technologies and services. As one of the world's leading commercial vehicle brands, Scania is committed to working with its partners to continuously drive the transition to sustainable transportation systems.

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Scania is the first commercial vehicle company in the world to be approved for scientific carbon emission reduction targets, and has been fulfilling its carbon reduction commitments. As the Group's third production base in the world, the Rugao manufacturing base has been determined to use green electricity and renewable fuels from the very beginning of design and construction, and it is a true zero-emission factory. Biogas produced from local sewage sludge, kitchen waste and other biomass will serve as the main energy supply for the factory, fully realizing a circular economy and achieving carbon emission reduction goals.

He Mochi also said: "In addition to supplying the Rugao plant, the biogas project can be extended to provide green energy for trucks and buses in the future. Scania strongly supports Rugao to become a demonstration city for biogas recycling applications."

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Adhering to Scania's century-old craftsmanship, the Rugao production base has a safe, healthy and environmentally friendly working and logistics environment. The design of the production process aims to optimize the coordination of resources within the factory, while maximizing the use of industrial resources in the entire supply chain, reducing redundant production capacity and improving production efficiency. In addition, Scania has also established cooperative relations with vocational technical schools in Rugao and universities in Nantong, and continues to supply talents for the local automobile manufacturing industry.

Ruthger de Vries, president of Scania's manufacturing business in Asia, said: "The construction and operation of the Rugao base will focus on enhancing customer value and sustainable development, applying Scania's digital manufacturing innovation, and building it into a benchmark for the world's lighthouse factories."

Scania is optimistic about the technological innovation that China will bring to the logistics and transportation industry. By making Rugao the third production center in the world, Scania will integrate into China's innovation ecosystem in the fields of electrification, autonomous driving, and intelligent connected vehicles.

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Scania has been combining stringent quality standards with new technologies for many years, building deep and lasting partnerships with leading Chinese suppliers. Scania's local industrial layout will further help improve the level of China's auto supply chain and promote the effect of supplier clustering.

Based on Scania's business model, modular system and operational approach, Scania Rugao's manufacturing base will provide a world-class foundation for automobile localization business in Jiangsu Province and accelerate the transformation of China's logistics and transportation to a sustainable transportation system.


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