Scania has officially inaugurated its third global industrial hub in China, marking a defining moment in the company’s 134-year history and reinforcing its long-term commitment to sustainable transport and global expansion.
Located in Rugao, Jiangsu Province, the new facility represents one of Scania’s largest-ever international investments, covering 800,000 square metres with an annual production capacity of 50,000 vehicles. The hub will serve both the domestic Chinese market and selected export destinations across Asia and beyond, creating around 3,000 new jobs and representing a total investment of €2 billion.
Scania becomes the first Western OEM to receive full approval for a wholly owned truck production plant in China — a landmark achievement that strengthens its presence in the world’s largest and most competitive truck market.
The Rugao site will operate almost entirely on renewable energy, including locally produced biogas and certified green electricity, aligning directly with 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 operated in China’s commercial vehicle market for over six decades and views the new industrial hub as a key enabler of deeper cooperation with local partners in transport, connectivity, and electrification. The investment includes R&D centres in Rugao and Shanghai, strengthening Scania’s ability to co-develop products and technologies for the region.
“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.”
As part of the TRATON Modular System (TMS), the Rugao hub will enable Scania and its group partners to scale, tailor, and innovate efficiently across global markets. The facility will also support the launch of two commercial offerings in China: Scania’s globally renowned product range of premium tractors and rigids, and the newly developed NEXT ERA tractor series, designed specifically for China’s high-volume long-haul segment.
The NEXT ERA line shares Scania’s modular DNA but has been engineered to integrate seamlessly into China’s digital logistics ecosystem, offering a standardised product and service portfolio tailored for competitive, high-mileage operations. It also allows for locally developed technologies to debut in China before being rolled out worldwide.
Deliveries from the Rugao plant are set to begin in late 2025, with the official launch of the NEXT ERA product range scheduled for the first half of 2026.
