Scania inaugurates brand-new production plant in Rugao, China
Covering 800,000 square metres, the site has a licensed production capacity of 50,000 vehicles a year and will serve both the Chinese market and selected export markets in Asia and beyond. Scania is the first western OEM to be granted a full production licence for a wholly owned truck plant in China. In Rugao, Scania will build both tractors and rigids, and also a new tractor product range – NEXT ERA – developed specifically for the Chinese market.
Scania has officially inaugurated its brand-new industrial plant in Rugao, Jiangsu Province, China. “It’s an investment that not only strengthens Scania’s global footprint but positions the company at the heart of the world’s largest truck market”, stated the truck manufacturer in an official note.
Covering 800,000 square metres, the site has a licensed production capacity of 50,000 vehicles a year and will serve both the Chinese market and selected export markets in Asia and beyond. The facility creates around 3,000 new jobs locally and represents a total investment of 2 billion euros.
Scania is the first western OEM to be granted a full production licence for a wholly owned truck plant in China. Indeed, Scania has been present in the Chinese commercial vehicle market for the past 60 years. With the new industrial hub, including R&D centres in Rugao and Shanghai, Scania strengthens its local footprint and its ability to jointly develop solutions with Chinese partners.
Scania: the new production plant in Rugao, China
More into details, the Rugao facility will operate almost entirely on renewable energy sources, including locally produced biogas and certified green electricity. These measures contribute directly to Scania’s Scope 1 and 2 decarbonisation targets. Additionally, the new industrial hub is designed to be part of the TRATON Modular System (TMS), which enables Scania and TRATON Group brands to efficiently scale, tailor, and innovate across markets, customer demands and product portfolios.
In China, Scania will build both tractors and rigids, with a wide range of service portfolios. Secondly, in addition to the global Scania offer, a new tractor product range – NEXT ERA – developed specifically for China’s competitive long-haul and volume segment. Deliveries from production in Rugao will begin in late 2025 and NEXT ERA will be launched in the first half of 2026.
“Our establishment in Rugao is more than a factory; it will be part of China’s dynamic innovation landscape and fuel Scania’s own development,” said Christian Levin, President and CEO of Scania and TRATON Group, “By also producing and innovating locally, we can tap into China’s speed and creativity, strengthen our global capabilities and accelerate the shift towards sustainable transport.”
