Largest contract ever for Scania in Algeria


SODERTALJE, Sweden, Nov. 26, 2004 (PRIMEZONE) -- The Scania distributor in Algeria, Mavia, has sold 150 trucks to haulage company Tonic Emballage in Algiers. Of these, 120 will be assembled in Sweden and the Netherlands in January next year, making them among the very last of Scania's 4-series trucks to be built in Europe.

The remaining 30 tractor units will be assembled locally in Algeria by Mavia at the company's facility in Oued Smar just outside Algiers.

The bodies for the 120 trucks from Sweden and the Netherlands -- platform models with tail lifts and tarpaulin covers -- will be built by Gehab of Alvesta, Sweden.

"In other words, these are trucks that are fully built and ready for the customer to use from day one, what we term FFU (fit for use)", explains Lars Andersson, sales manager for Scania's North African markets.

"This contract is Mavia's largest so far since operations started in Algeria two years ago", he adds.

Scania's growing order book from customers in Algeria is a direct result of the strong economic upswing currently being experienced in the country, an upswing powered by changes in the price of oil. The total market for imported heavy vehicles this year is expected to be between 1400 and 1500 units. French company Renault has long dominated truck imports in Algeria, but Scania is gradually expanding its market shares and with the new order from Tonic, has now secured almost 12 percent of the market.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 29,1 00 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2003, turnover totalled SEK 50,500 million and the result after financial items was SEK 4,600 million. Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden.

Scania press releases are available on the Internet, www.scania.com

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