Scania Invests $800 Million To Modernize Brazil Operations
Diesel Progress Magazine
Scania has announced an investment of R$2.6 billion (US$800 million) in Brazil. The investment is for the development of new products, updates and modernization of its industrial park in Sao Bernardo do Campo city, Sao Paulo state, through 2020. The site manufactures trucks, buses and engines.
"We arrived in Brazil in 1957 and in 1962 we moved to Sao Bernardo do Campo and built our engines plant," said Rogerio Rezende, director of institutional and governmental affairs at Scania Latin America. "Without a long term view, this story would not be possible," he commented.
The scheduled investment should guarantee the technological evolution of the Brazilian unit. Scania thus reinforces its strategy of making Brazil a mirror of its Swedish plants. "We continue investing in what is best for the automotive industry and this reinforces our commitment with the country and with a sustainable transport system," said Rezende. "We can not only look the situation of today or the next year, when we talk about investments we have to look for 10 or 20 years ahead."
According to Rezende, the decision of having the first plant outside Sweden in Brazil was a correct strategy. "We are present from South to North, West to East. They are six decades of activities marked by pioneering, social and environmental responsibility, respect to the laws, to the clients and employees," he said.
The plant in Sao Paulo has become an export platform for Scania and it supplies 30 markets in Latin America, Middle East, Africa and Asia. "Having directed the production to other countries was a strategy we used to face the crises period. An example of this is that we prepared our line to produce Euro 6 engines," Rezende detailed.
Scania has launched recently its laboratory to develop, test and certify engines in Brazil. The new research area demanded and investment of U$12 million (R$40 million). In 2015, it also announced a new facility for painting and assembling trucks cabins, with and investment of U$31 million (R$96 million).
"Our history reflects the investment we made to have a top notch industrial park with advanced technology and a solid brand, overcoming obstacles and evolving with our products and services, especially, investing in people and relationships - bases of our business," stated Rezende.