All agreed loans

Sweden. Scania CV AB

Date of agreement: 19 Nov 2018
Country: Sweden
Customer: Scania CV AB
Amount in EUR: EUR 75 million
Maturity: 8 years
NACE sector / loan type: Manufacture of other transport equipment
Business area: Industries and services

Project

The loan has been provided to Scania to finance its new foundry in Södertälje in Stockholm County, Sweden. In the foundry, cylinder heads and blocks for vehicles manufactured by Scania, are casted. Scania manufactures several kinds of trucks, from long haulage vehicles to special-purpose trucks, for example those used in firefighting.

Scania’s new foundry will allow a capacity increase from the current 30,000 tonnes of melted iron a year to 90,000, and it will supply the group’s European vehicle production plants. As the existing foundry has a limited production capacity, over 60% of the current production of cast cylinder heads and blocks is sourced from elsewhere. The new foundry will give a substantial competitive edge to the company compared to the other alternatives, which were either to continuing the substantial outsourcing or to upgrade the existing foundry. The investment in a new foundry is one of Scania's largest single investments in new plant.

The new foundry will be more energy efficient than Scania´s current. Additionally the processes of material handling and recycling will be improved. The new foundry will be operated using electricity produced from renewable sources. 

The total investment amounts to EUR 165 million, and construction is planned to start in January 2019. 

Scania is a global company with sales of trucks, buses and services in 100 countries, employing approximately 52,000 people. Scania's production units are located in Europe, South America and Asia. Scania is part of the Volkswagen Truck & Bus division named Traton.

Fulfilment of NIB's mandate

Productivity:
Scania is a significant part of the Swedish automotive industry, which is highly important for the Swedish economy. The industry accounts for substantial employment, exports and value added. Investment in capacity expansion is therefore vital to maintain technological leadership and add value to the Swedish automotive industry. The foundry will be located next to the R&D organisation, facilitating cooperation, for instance with product development and problem-solving. The investment will support Södertälje to remain a hub for engine production.

Environment:
Substantial energy savings are expected due to the investment. Additionally, the amount of recovered waste heat will increase.

Sustainability summary

No environmental concerns have been identified.

Press release

NIB finansierar Scanias nya gjuteri i Södertälje