Scania launches Rugao factory as part of global shift toward sustainable transport

Scania inaugurates a major industrial hub in Rugao, China, marking its first fully owned truck plant in the country and advancing sustainable production.

Scania has taken one of the most decisive steps in its 134-year history by inaugurating a new industrial hub in Rugao, Jiangsu Province. This site becomes the company’s third global production centre and the first fully owned Western truck plant in China. With an investment of two billion euros, Scania signals that it intends not only to be present in the world’s largest truck market but to become part of it.

The facility covers 800,000 square metres and has a licensed annual capacity of 50,000 vehicles. Nearly 3,000 new jobs strengthen the local economy, while the plant itself stands as a model for renewable energy use — operating almost entirely on locally produced biogas and certified green electricity. These measures contribute directly to Scania’s Scope 1 and 2 decarbonisation goals.

The Rugao hub is integrated into the TRATON Modular System, enabling flexible adaptation to diverse markets and faster innovation. Production includes Scania’s global truck range and the new NEXT ERA series, created specifically for China’s long-haul sector and deeply connected to the local digital ecosystem.

Deliveries from Rugao are expected to begin in late 2025, with the official launch of NEXT ERA scheduled for the first half of 2026. According to Christian Levin, President and CEO of Scania and the TRATON Group, establishing operations in China allows the company to “produce and innovate locally,” drawing on the speed and creativity of the Chinese market.

For Scania, the Rugao hub marks more than an expansion — it reflects how the traditional truck industry can align with the new energy era, where factories evolve into active parts of a sustainable industrial ecosystem.