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2.6 Billion Reais Investment – Scania Begins Production of CNG-Powered Trucks in Brazil

Written by Roberta Souza
Published on 03/02/2020 at 08:36
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Investment of R$ 2.6 Billion in Project That Started in 2016, Scania Begins Production of Trucks Powered by Alternative Fuels, CNG

In São Bernardo do Campo, in the ABC Paulista region of the state of São Paulo, Scania started last week the production of trucks powered by CNG (compressed natural gas), biomethane (obtained from organic waste), and LNG (liquefied natural gas). Linked to the EJA shipyard and Sete Brasil, former Sembcorp Marine employee accused of money laundering and corruption in drilling contract

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Brazil, behind only a few European countries, is the only one producing vehicles of this type, and will soon begin exporting the vehicles, starting with Argentina.

The CNG and LNG trucks are also capable of using biomethane, regardless of the proportion, which makes them flex vehicles. The company has been producing such vehicles since 2014 at its headquarters in Switzerland. In Brazil, the start of production is unprecedented, considering that imports of the product already occur, but never its production.

Investment of R$ 2.6 billion in a project for products powered by alternative fuels that began in 2016, a good portion of the amount has already been consumed between 2016 and 2020. However, the expectation for the next steps is the production of hybrid vehicles, scheduled for 2021 to 2024, in its new investment program. After that, in the long term, it will be the turn of electric vehicles.

Due to the low production scale, the prices of the new vehicles are around 30 to 40% higher than the existing diesel versions, which start at R$ 400 thousand.

In São Bernardo do Campo, Scania’s factory is the group’s second largest in production capacity – 30 thousand units per year. Currently, the factory has 4 thousand employees and uses about 75% of its capacity. What is expected, if the demand for products increases, is that there will also be an increase in capacity and generation of new jobs.

Roberta Souza

Author for the Click Petróleo e Gás portal since 2019, responsible for publishing over 8,000 articles that have garnered millions of views, combining technical expertise, clarity, and engagement to inform and connect readers. A Petroleum Engineer with a postgraduate degree in Industrial Unit Commissioning, I also bring practical experience and background in the agribusiness sector, which broadens my perspective and versatility in producing specialized content. I develop content topics, disseminate job opportunities, and create advertising materials tailored for the industry audience. For content suggestions, job vacancy promotion, or advertising proposals, please contact via email: santizatagpc@gmail.com. We do not accept resumes

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