Heavy Vehicles on the Way

Swedish truck builder Scania is establishing an industrial facility in Dubai for bodybuilding and equipping complete commercial vehicles and buses.

Even Crown Princess Victoria of Sweden showed up to the recent ceremonial commencement of construction of Scania’s new industrial facility in Dubai.

“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 the groundbreaking ceremony.

The facility, based in Jebel Ali Free Zone, will have a 20,000 sq metre designated plot to operate and from where it is expected to have the capacity for customisation of 1,400 trucks per year. Set to open by the end of 2008, Hallberg says he has high hopes for a greater Scania presence in the region. “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,” he says.

For industrial and commercial reasons, Scania will focus exclusively on heavy trucks and buses.

“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 include 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,” Dahlberg says.

At present, sales of service, maintenance and financial facilities are the fastest-growing of Scania’s business areas. With some 35,000 employees, operating in more than 100 countries, the Swedish company seems equipped for the long haul.