Scania increases presence in Arab markets on the Gulf

Scania is establishing an industrial facility in Dubai for bodybuilding and equipping complete vehicles.

“From here we will deliver high-quality fully built vehicles that are adapted to the requirements and operating conditions that apply in the region,” said Per Hallberg, Scania’s Head of Production and Procurement, at a groundbreaking ceremony today attended by Swedish Crown Princess Victoria and other dignitaries.


The facility will have the capacity for customisation of about 1,400 vehicles per year and is located in a 20,000 square metres industrial site in the expansive Jebel Ali Free Zone in Dubai. Operations will begin late 2008 and will initially encompass vehicles for construction haulage, such as tipper and concrete trucks, but the facility will also be adapted for future bus chassis delivery.

Establishing the plant in Dubai is part of Scania’s strategy to strengthen its position on important growth markets.

“Our collaboration with selected suppliers that are well-established in Arab markets, together with the shorter lead and delivery times provided by the Dubai facility, will greatly benefit our expansion in the region,” Mr Hallberg says.

There is very high demand for heavy trucks and buses in the region due to large investments in infrastructure and new construction ? not only in the United Arab Emirates but also in the other Gulf states. The market for heavy trucks is beginning to approach 20,000 per year. Demand for tourist coaches and public transport buses is also increasing.

“Scania’s growth scenario for 2009 and onward also includes increasing our sales in the Gulf states in new segments and gaining market share,” says Klas Dahlberg, Scania’s regional sales director.

Later this year, Scania will also inaugurate a regional centre for sales and service training in Dubai.

“Training and recruitment of personnel is important to enable Scania to increase sales and develop its service market business in the region,” Mr Dahlberg says.