Scania AB plans to resume vehicle production in Iraq
Swedish truck and bus manufacturer Scania AB announced on Wednesday (19 November) plans to start vehicle production in Iraq.
Scania said that it has signed an agreement in principle with the government of Iraq regarding the assembly of trucks and busses. The preliminary agreement covers the delivery of 500 vehicles, with production starting during the third quarter of 2009, but Scania said that it will aim for a capacity of 3,000 vehicles.
Scania said that it has been offered back its old assembly plant in Iskandariyah outside Baghdad. Scania also said that it plans to collaborate with its local distributor to invest in the establishment of a service network in the country.
Scania, headquartered in Sodertalje, Sweden, is one of the world's leading manufacturers of trucks and buses and of industrial and marine engines. The company has 36,000 employees in some 100 countries, and reported sales of SEK84.5bn in 2007.
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