Scania opens its €2 billion Rugao plant in China, producing 50,000 vehicles annually and running on renewable energy.
Rugao Plant “More than A Factory” – Scania’s Christian Levin
Scania has opened a new production plant in China. Located in Rugao, Jiangsu Province, the industrial hub is one of Scania‘s largest global investments to date.
The plant in China is Scania‘s third global industrial hub, covering 800,000 square metres with the capacity to produce 50,000 vehicles a year. The facility, which has created 3,000 new jobs and is worth 2 billion euros, will serve the Chinese markets and other selected export markets, especially in Asia.
The inauguration of the plant marked a special milestone for Scania as it had become the first Western OEM to be granted a full production licence for a wholly owned plant in China. The Rugao plant itself will run almost entirely on renewable energy sources, including locally sourced biogas and certified green electricity, which contributes directly to 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.”
China is the world’s largest truck market, and Scania has been present in it for the past 60 years. The new plant in Rugao signifies the company’s long-term plan to jointly develop transport solutions with Chinese partners. It also enables Scania to deliver its products faster and give more options for its customers in China and Asia.
“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.”
Two Product Lines
The new industrial hub is designed to be part of the Traton Modular System (TMS), which enables Scania and Traton Group brands to efficiently scale, tailor, and innovate by integrating Chinese technologies and applications that will strengthen local and global competitiveness.
Two product lines will be offered in China. The firstis Scania’s existing product range, including both tractors and rigid trucks, along with a range of service options. The second is a new product line named NEXT ERA, designed specifically for China’s long-haul and high-volume transport sector.
NEXT ERA represents a new stage in Scania’s operations in China. Although it shares core design elements with the Traton Modular System, it has been developed around local transport conditions and the country’s digital infrastructure. The standardised product and service portfolio aims to meet the needs of large-scale operators. The TMS framework also allows new technologies introduced in China to be applied later in other markets.
Production in Rugao is expected to begin in late 2025, with deliveries to follow. The official launch of the NEXT ERA range is planned for the first half of 2026.
