Swedish truck manufacturer Scania will open its new 2,3 billion USD production facility in Rugao, eastern Jiangsu province, in October 2025.
At least half of the trucks produced at the site will be exported, Scania CEO Christian Levin told the Financial Times in an article published 12 August 2025. The new factory will complement the company’s existing manufacturing hubs in Sweden, the Netherlands and Brazil.
The Rugao plant will have an annual capacity of 50,000 vehicles, which is about half of Scania’s current global output, and it will employ more than 3,000 people. Construction began in 2022 and was completed in 2024. The Chinese government has asked Scania to scale up to full capacity as quickly as possible.
According to Scania, the site is intended to serve the growing high-end truck market in China and provide more reliable and efficient transport solutions, including for special purpose logistics. The location also allows Scania to shorten delivery times and adapt production according to geopolitical developments.
Scania initially pledged to make the facility carbon neutral, using biogas from local wastewater, food waste and other biowaste as its main power source. If achieved, it would be the first commercial vehicle manufacturing plant in China with such a designation.
The company, part of Volkswagen’s Traton Group, is among a small number of foreign manufacturers licensed to operate a fully owned plant in China.
