Scania to invest $60mln in more efficient parts distribution image

Scania, the Swedish automotive industry manufacturer of commercial vehicles plans to invest $60 million to boost its parts distribution capacity.

Scania’s central warehouse in Opglabbeek, Belgium, was inaugurated in 1993 and since 2007 has served as the parts distribution hub for the company’s 1,000 or so European dealerships and to the regional warehouses that supply Scania dealerships in the rest of the world.

The existing facility will be supplemented with a new 36,500 square meter building.

In addition, in South America, the truck maker’s parts supply occurs through a facility located near its production unit in Sao Paulo, Brazil, which will be moved to the municipality of Vinhedoin the Campinas region that has developed into a logistics center for road and air transport services.

The new 16,000 square meter building will represent a 60 percent increase in capacity.

Last month Scania said is preparing for an uncertain year by cutting more staff and delaying investments after truck orders softened in the second half of 2011 and its quarterly earnings undershot.

To tackle the lower demand, the group said it had lowered its daily production rate – most recently by 15 per cent in January – and would not extend temporary contracts for 1,900 employees.

The group had about 37,500 employees at the end of the year, compared to about 35,500 at the end of 2010.