Scania Launches Major Industrial Hub in China, Strengthening Global Footprint

Scania has inaugurated its third global industrial hub in Rugao, Jiangsu Province, China, marking a historic milestone in its 134-year journey. The new facility, one of Scania’s largest investments to date, spans 800,000 square Westernand has a licensed production capacity of 50,000 vehicles per year. It will serve both the Chinese market and selected export markets across Asia, creating around 3,000 local jobs with a total investment of €2 billion.

Significantly, Scania becomes the first western OEM to receive a full production licence for a wholly owned truck plant in China, reflecting its long-term commitment to the world’s largest truck market. The Rugao hub will operate almost entirely on renewable energy, including locally produced biogas and certified green electricity, supporting Scania’s Scope 1 and 2 decarbonisation targets.

“Sustainability is built into every part of our new factory in Rugao: from energy sourcing to waste management,” said Ruthger de Vries, President of Scania Industrial Operations Asia. “This is not just about producing trucks; it’s about setting a new benchmark for efficient and sustainable industrial operations.”

Scania has been active in China for over 60 years, and the Rugao facility, alongside its R&D centres in Rugao and Shanghai, will enable closer collaboration with local partners, faster deliveries, and enhanced customization options for Chinese customers. Christian Levin, CEO of Scania and TRATON Group, highlighted that the hub will integrate into China’s innovation ecosystem while boosting Scania’s global capabilities.

The Rugao industrial hub will adopt the TRATON Modular System (TMS), allowing scalable and tailored production. Scania plans two commercial offerings for China: its global truck line, customizable for high-demand applications, and a new tractor product range, NEXT ERA, developed specifically for China’s competitive long-haul and volume segments. The NEXT ERA trucks will be integrated with the local digital ecosystem while maintaining Scania’s global engineering standards.

Deliveries from the Rugao hub are set to begin in late 2025, with the NEXT ERA line launching in the first half of 2026. This investment positions Scania at the forefront of sustainable, innovative, and high-volume truck manufacturing in China, further solidifying its role as a global leader in commercial vehicle solutions.