The factory is Scania's biggest production investment outside Europe and Latin America © Scania
The factory is Scania's biggest production investment outside Europe and Latin America © Scania

Scania opens factory in Thailand

Will Green is news editor of Supply Management
27 February 2019

Scania has set up a €23m factory to assemble and build trucks in Thailand.

The facility, in the Bangkok Free Trade Zone, is the biggest investment in production the company has made outside Europe and Latin America.

The factory will assemble chassis for trucks and buses and include a manufacturing facility for truck cabs. It covers 33,900 sq metres and will include purchasing staff alongside production and logistics, R&D and sales and marketing.

Gustaf Sundell, managing director for Scania Group Thailand, said: “With this new industrial establishment and with local suppliers, we can now build Scania trucks and buses according to global specifications, with Thai origin. It gives us completely new prerequisites for our growth in the ASEAN Free Trade Area.

“By increasing our local presence, we are now able to quickly respond to customers’ demands, and make sure that we provide the best transport solution for each customer.”

Research in 2018 said Thailand had become the largest car producer in Southeast Asia, with output in 2017 accounting for 10% of the country’s GDP.

A report, from ResearchAndMarkets, said between 2011-12 the government implemented a first-time buyer programme that boosted production and sales, with sales hitting 873,000 in 2017.

Production is expected to grow to more than 2.4m vehicles in 2022, of which 1.1m will be sold domestically and 1.3m exported.

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