Scania Chooses Distributor for Myanmar

  Scania Chooses Distributor for Myanmar

Business Wire

SÖDERTÄLJE, Sweden -- November 12, 2012

Regulatory News:

Scania (STO:SCVA)(STO:SCVB)has entered into an agreement with Octagon
International Services Co Ltd regarding sales and service of trucks and buses
in Myanmar, formerly known as Burma. The ongoing modernisation of the country
and its infrastructure has led to increased demand for trucks for goods and
construction-related transport services as well as for tourist and
long-distance coaches.

“If Myanmar continues to develop positively, the country can become one of the
major markets in the region for vehicles of Western European standard and
quality levels,” says Henrik Henriksson, Executive Vice President, Head of
Franchise and Factory Sales. “Octagon expects to deliver 200-300 vehicles even
during its first year as our distributor.”

Octagon International Services, a company in the Shwe Taung Group, is a
distributor of world-leading makes of machinery and vehicles for the
construction industry and is also responsible for providing service to this
sector. By including Scania’s trucks in its product portfolio, the company
will strengthen its capability to deliver comprehensive solutions for the
major infrastructure projects that are under way.

“Even today there is heavy demand for robust trucks with good load capacity
for transport services, for instance in construction of roads and power plant
dams. The need for trucks for long-haul goods transport will also increase in
line with improved road standards and economic growth,” says Henriksson.

Concurrently with the expansion of the road network and continued
urbanisation, demand is also increasing for long-distance coach services,
particularly for travel between the major cities of Nay Pyi Taw,Yangon and
Mandalay. The growing stream of tourists visiting Myanmar has also contributed
to the increased demand. Octagon expects to deliver some 100 buses and coaches
during its first year as Scania’s distributor.

Octagon has recently opened a new service facility exclusively for Scania’s
vehicles in Nay Pyi Taw and is now building a Scania workshop inYangon. The
construction of a new workshop in Mandalay will also begin shortly.

“The investment that our distributor is making to build up a service network
will provide Scania with a strong position in the market. Octagon’s investment
also demonstrates that companies in the country believe in continued positive
development in Myanmar,” concludes Henriksson.

Scania is one of the world’s leading manufacturers of trucks and buses for
heavy transport applications, and of industrial and marine engines.
Service-related products account for a growing proportion of the company’s
operations, assuring Scania customers of cost-effective transport solutions
and maximum uptime. Scania also offers financial services. Employing some
37,500 people, the company operates in about 100 countries. Research and
development activities are concentrated in Sweden, while production takes
place in Europe and South America, with facilities for global interchange of
both components and complete vehicles. In 2011, net sales totalled SEK 87.7
billion and net income amounted to SEK 9.4 billion. Scania press releases are
available on www.scania.com

This information was brought to you by Cision http://www.cisionwire.com

Contact:

Hans-Åke Danielsson, presschef
tel 08 553 856 62
 
Press spacebar to pause and continue. Press esc to stop.