Swedish truck giant Scania has inaugurated a massive new factory in China, a 20-billion-kronor investment set to produce 50,000 vehicles annually. The Rugao facility marks a historic milestone for the company. Meanwhile, Foreign Minister Maria Malmer Stenergard is visiting China to discuss cooperation areas and raise human rights issues.
Scania describes the inauguration of the Rugao factory as a 'historic milestone' and one of its largest global investments. The facility is the company's third production unit in China, the world's largest truck market where Scania has been present for 60 years. The investment totals 2 billion euros, equivalent to over 20 billion kronor, with a licensed capacity of 50,000 vehicles per year. It spans 800,000 square meters and will create 3,000 local jobs.
'Our establishment in Rugao is more than a factory; it will be part of China's dynamic innovation landscape and drive Scanias own development', says Christian Levin, CEO and Group Chairman of Scania and TRATON Group, in a press release. The factory will almost exclusively be powered by renewable sources such as locally produced biogas and certified green electricity. It is the first time a Western original equipment manufacturer has been granted a full production license for a wholly owned truck factory in China.
On Thursday and Friday, Foreign Minister Maria Malmer Stenergard (M) is visiting China to meet her counterpart Wang Yi. 'China is the world's second-largest economy and an emerging innovation hub. We want to cooperate where possible and in line with our interests and values, for example regarding trade and green transition', she says. The visit includes discussions on economy, trade, security policy, and Russia's war of aggression against Ukraine. Malmer Stenergard also plans to raise the consular case of Gui Minhai, imprisoned in China for ten years, and the human rights situation. China's ambassador to Sweden, Aimin Cui, is leaving his post, but his replacement is unknown.