Scania Makes a Breakthrough into the Chinese City Bus Market

STOCKHOLM, Sweden December 28, 2007; Scania is now delivering 25 articulated buses meeting the Euro 4 emission requirements to the public transport company in Changzhou in the Jiangsu province in eastern China. Scania won the contract on account of its emission technology, low operating cost and long service life.

The delivery was made as a result of the agreement between Scania and Chinese bodybuilder Jiangsu Alfa Bus, signed in the presence of Sweden’s prime minister and China’s president in June 2007.

Scania’s emission technology is based on EGR, exhaust gas recirculation, which neither requires aftertreatment of exhaust gases, nor extra tanks with additive on-board.

“Our convenient emission control solution appeals to Chinese customers,” says Mats Harborn, Managing Director of Scania China. “Getting lower exhaust emissions without the need to store and fill additives makes it easy to take a radical step towards a cleaner transport system.

“Scania scores high on uptime, fuel economy and service support. Combined with long-lived and durable vehicles, this is fundamental to minimise the overall operating cost – the cost per passenger-kilometre.“

In October this year, Scania signed a contract and is also in the process of supplying 500 city buses to Singapore, where environmental performance was a deciding factor..

China is rapidly extending its BRT systems (bus rapid transit), with many projects in the pipeline in major cities all across the country. BRT provides a quick and flexible solution to passenger transport in fast-growing regions.

Alfa Bus is a privately owned company based in Jiangsu province that manufactures buses for urban traffic as well as tourist and express coaches. With backing from Scania, the company will also be responsible for marketing the Scania buses it produces.

Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 32,800 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. Bus and coach production takes place in Sweden, Brazil and Mexico, while bodybuilding takes place in Poland and Russia. In 2006, invoiced sales totalled SEK 70.7 billion and the net income amounted to SEK 5.9 billion.