The local subsidiary of Scania has opened a R11-million head office, assembly plant and spares warehouse at Aeroton.

The local subsidiary of Scania has opened a R11-million head office, assembly plant and spares warehouse at Aeroton.

According to , the Swedish truck and bus manufacturer has invested about R100 million in South Africa since 1995. Scania South Africa's managing director, Ulf Grevesmuhl, said the complex would give the company the capacity to double its output to more than 2 000 built-up units a year.

"We're planning dramatic increases in cross-border trade and the associated road transport operations that, of necessity, accompany this trade,” Grevesmuhl said. "We're also planning for increased demand for bus transport in South Africa as the economic climate improves and per capita earnings increase," he said.

Grevesmuhl said Scania SA increased its export sales by more than 400 per cent last year. Scania SA last year sold a total of 650 truck and bus units, with 116 trucks and 153 buses sold to buyers beyond South Africa's borders.

Gunnar Rustadt, the group vice-president of Scania Sweden, said Africa, Asia Pacific and Latin America accounted for 20 percent of Scania's turnover.

"It's an important region to be and in many places we're only established with buses and engines. South Africa and surrounding markets have big potential for all Scania's products and services, and is a strategic market for Scania centrally."

Original article from Car