Truck maker Scania invests in Dubai to tap Gulf growth

Swedish truck maker Scania said on Thursday it would build a factory in Dubai to strengthen its presence in the high-growth Gulf region.

“There is very high demand for heavy trucks and buses in the region due to large investments in infrastructure and new construction — not only in the United Arab Emirates but also in the other Gulf states,” the company said in a statement

“The market for heavy trucks is beginning to approach 20,000 per year. Demand for tourist coaches and public transport buses is also increasing.”

The factory, to be located in an industrial site in the port area of Jebel Ali, is to be used for building the body of trucks and customizing completed vehicles.

The facility will have the capacity for customization of about 1,400 vehicles per year and operations will begin in late 2008, the company said.

German car group Volkswagen seized control of Scania in early March and now owns 68.60 percent of the voting rights in the group.