Scania buys truck plant in China
By Jim Gibbins - 1st March 2021
Sweden / China - Swedish heavy commercial vehicle manufacturer, Scania AB, which is a unit of Volkswagen AG’s commercial vehicle division, Traton SE, has confirmed that its recently-acquired plant in China’s Jiangsu province will serve as a regional production centre for heavy commercial vehicles. (This is a historic event, as it is likely to be the first time a foreign truck OEM has acquired more than 50% of a Chinese truck builder. This follows the announcement of reforms to the foreign ownership restrictions – for more information, see extracts from article written by international law firm, Kings Wood & Mallesons (www.kwm.com) in this issue).
Scania states that in November last year, it completed the acquisition of Nantong Gaokai Auto Manufacturing Ltd, a Chinese truck manufacturer based in the city of Rugao, Jiangsu Province paving the way for it to expand into the world’s largest medium and heavy truck market with 1.62 million sales in 2020.
