Scania Opens Major New Global Production Centre in China

Scania has reached a significant milestone in its 134-year history with the opening of a new global production hub in China. This development expands the company’s international manufacturing presence and places it at the centre of the world’s largest market for heavy-duty trucks.

Located in Rugao, Jiangsu Province, the new site covers roughly 800,000 square metres and represents one of Scania’s most substantial investments worldwide. The facility has approval to produce up to 50,000 vehicles annually and will serve customers in China as well as selected markets across Asia and other regions. The project brings approximately 3,000 new jobs to the local area and reflects a total investment of around 2 billion euros.

Scania is the first Western commercial vehicle manufacturer to receive full approval for independent truck production in China—highlighting the company’s long-term commitment to the region.

The Rugao plant has been designed to operate predominantly on renewable and low-emission energy sources, including locally generated biogas and certified green electricity. These measures play a direct role in reducing Scania’s Scope 1 and Scope 2 carbon emissions.

“Sustainability has been incorporated into every element of the Rugao facility—from its power supply to its waste handling systems,” says Ruthger de Vries, President of Scania Industrial Operations Asia. “Our aim goes beyond manufacturing trucks. We want to set a new standard for efficient and environmentally responsible industrial production.”

Scania has had a presence in the Chinese commercial vehicle sector for six decades. China remains the world’s largest truck market and a leading hub for innovation in connected, autonomous, and electrified transport solutions. With the addition of R&D centres in Rugao and Shanghai, Scania strengthens its ability to collaborate closely with local partners and customers. This strategic development enables shorter delivery times, broader configuration choices, and deeper technical cooperation across Asia.

“Our Rugao expansion is not only a new manufacturing facility—it connects us to one of the most dynamic innovation ecosystems in the world,” says Christian Levin, President and CEO of Scania and the TRATON Group. “Producing and developing locally opens opportunities to draw on China’s speed and creativity, enhance our global competencies, and accelerate the shift toward sustainable transport solutions.”