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Scania Announced on Tuesday, May 21 an Investment of R$ 1.4 Billion in the Modernization of the Factory in São Bernardo do Campo – SP
The Swedish company will make its billion-dollar investment in the São Bernardo do Campo – SP factory, where the amount will be applied from 2021 to 2024. In addition, there will be an extra investment of R$ 75 million that will begin to be applied immediately in a new research and development center in São Bernardo do Campo (SP).
At an event held with the governor of São Paulo, João Doria, the Swedish manufacturer stated that the funds will add to another R$ 2.6 billion that has been invested since 2016, expected until 2020, and aims primarily to adapt the factories to the changes in the assembly line and, consequently, to introduce a new generation of trucks for Latin America.
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In the first four months of 2019, Scania was the fourth largest truck manufacturer in Brazil, with sales of 3,230 vehicles, a 31% increase compared to a year earlier, according to the manufacturers’ association Anfavea. The company was behind Mercedes-Benz, Volkswagen Trucks and Buses, and Volvo.
Christopher stated that the company is increasing its level of investment in the country to meet the new global transportation trends. “We have been in Brazil for 62 years, always believing in the long-term vision and potential of the country, and this investment reinforces our journey towards sustainable transportation,” he said.
According to the government of São Paulo, Scania is eligible to participate in IncentivAuto, considering that it is making an investment of R$ 1.4 billion. This is R$ 400 million above the minimum limit and guarantees at least 400 new jobs linked to these investments.
To participate in the program, interested companies must present an investment plan exceeding R$ 1 billion in the state and create at least 400 job positions.
The ICMS discount increases according to the size of the investment made by the manufacturer and is only passed on after the completion of the investment. Among the criteria, proposals for new factories, new production units, new products, and expansion of industrial plants may be accepted.
The announcement from the truck and bus brand, which has been in the country for over 60 years, comes at a time when other manufacturers are also investing here. Recently, General Motors announced an investment of R$ 10 billion in its plants in the State of São Paulo.
Honda also announced an investment of R$ 500 million in its motorcycle manufacturing park in the Free Trade Zone of Manaus. Still in the first quarter, Hyundai announced an investment of R$ 125 million to increase capacity at the Piracicaba (SP) plant. An outlier in this scenario is Ford, which announced that it will close its truck factory in São Bernardo do Campo as part of a strategy to exit the heavy vehicle business.
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