RUGAO — A BRIDGE TO THE FUTURE
The inauguration of Scania’s industrial hub in Rugao, China, marks a historic milestone for the TRATON GROUP. It is a strong statement of the Company’s long-term global ambition and a testament to its commitment to one of the world’s most dynamic markets. Camilla Dewoon, Executive Vice President and Head of Scania Group China, explains the significance of this step.
We have spent several years on intensive development. That work included laying the foundations for this major production unit, enforcing our procurement, establishing a Research & Development (R&D) and innovation hub, and launching an entirely new commercial portfolio. My role now is to guide the transition to a fully operational entity and set up the organization, governance, and processes that will ensure long-term success.
China is an important market for commercial vehicles. What does having a local production site mean for the TRATON GROUP?It means a great deal. China is the world’s largest market for heavy-duty vehicles and offers immense sales potential — but it is also extremely competitive. Operating here provides a very intense learning experience. Crucially, most of the innovation shaping the future of our industry — autonomous, electrified, and connected vehicles — is currently emerging from China. To stay at the forefront of these technologies, we want to fully immerse ourselves in the market, learn continuously, and partner with some of the brightest minds in the field.
Operating in China provides a very intense learning experience.
— Camilla Dewoon, Executive Vice President and Head of Scania Group China
It was unheard of until now in our business. We are the first western heavy duty truck OEM that was allowed to establish a production site independently. That is a tremendous sign of commitment and recognition from the Chinese authorities. It matters because it enables us to transfer our values, processes, and ways of working directly — we make the decisions and ensure our standards are met. We were told that this opportunity opened because we bring something valuable: our progress in sustainability and our reputation for producing reliable, safe products. The latter, in particular, aligns with the government’s focus on road safety.
Rugao is one of our largest global investments to date. Our ambition is to grow and be present in all major markets — and China clearly fits the bill. The country also functions as a giant think tank. That’s why we are setting up both an R&D team and a substantial procurement team on site. This location is more than a factory — it is an industrial hub. It signals that we are here to stay and that we intend to integrate deeply with the ecosystems that are shaping the future of mobility. We build trucks as well as components, embedding ourselves directly into the supply chain. By working with our suppliers to develop solutions, we make the entire chain stronger. Our high quality standards combined with the “test fast and adjust” mind-set of our Chinese colleagues create a challenging environment that will ultimately give us a competitive edge.
Rugao is not just a production site —
— Camilla Dewoon, Executive Vice President and Head of Scania Group China
it is our bridge to the future.
Sustainability is one of our top priorities. Building a new site from scratch gave us a unique opportunity to apply the best practices developed across our brands within the TRATON GROUP. Rugao is a state-of-the-art facility powered to a large extent by renewable energy, including certified green electricity and biogas. We recycle extensively, have implemented new measures to reduce compressed-air usage, and use a low-emission powder-coat painting process.
In many ways, Rugao is not just a production site — it is our bridge to the future, built on a foundation of quality, sustainability, and close collaboration with our partners. I am fully committed to integrating our Chinese operations into the TRATON GROUP, from a resilient supply chain to a new commercial portfolio.
