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Old August 4th, 2010, 11:48 PM   #1
sheytanElKebir
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IRAQ | Automotive Industry

Scania assembly plant reopens, building trucks and busses for the Iraqi market.



Scania is back in Iraq
Scania has a presence in Iraq again, including both production and sales. Trucks ordered by government customers are being assembled locally there, while an independent distributor is supplying the private sector market with imported vehicles. This distributor is also responsible for the reconstruction of Scania’s sales and service network in the country.

“If the situation in Iraq continues to stabilise, within a few years the country can regain its position as Scania’s most important market in the Middle East,” says Martin Lundstedt, Executive Vice President and responsible for the company’s sales and marketing.

In the early 1980s, Iraq was one of Scania’s largest markets. At the peak, sales totalled 3,900 trucks in one year (1981).

Late in 2009, Iraq’s State Company for Automotive Industry (SCAI) began production of the first of 500 trucks ordered under the terms of an agreement between Scania and Iraq’s Ministry of Industry & Minerals. Production is taking place at the government’s Iskandariyah industrial complex south of Baghdad.

“Creating jobs in the country’s industry has been an important aspect of the agreement between Scania and the Iraqi government,” Lundstedt says.

Today the SCAI facility in Iskandariyah employs about 300 people in its Scania operations, which not only includes final assembly of truck chassis but also bodywork for delivery of ready-to-drive trucks.

So far, SCAI has delivered some 150 fully equipped trucks to various public sector customers, for example tank trucks to the Ministry of Water Protection and Supply.

Iraq’s national reconstruction efforts also include measures to stimulate private entrepreneurship.

“Today there are private companies that need trucks for both mixed cargo and construction haulage. Most of these are used trucks imported from Europe. The demand for new trucks, but also buses and coaches, is expected to increase as Iraq carries out its planned infrastructure investments,” Lundstedt says.

To meet the increasing demand from the private sector market, Scania has resumed its collaboration with the Al Bunnia Group, which is Iraq’s largest private corporation. The Group is the distributor of Scania vehicles for the non-government market and has delivered some 30 vehicles so far this year.

The vehicles distributed to the private sector market are being assembled at Scania’s own factories and then customised by bodybuilders in the Middle East, among them Scania’s delivery centre in Dubai.

With Swedfund as a co-financier and part-owner, the Al Bunnia Group has established the company Mada Al Rafidain, which has begun the task of reconstructing Scania’s sales and service network in Iraq. A service workshop outside Baghdad was recently re-inaugurated. A completely new Scania facility will soon open in Erbil, northern Iraq.

Swefund is a Swedish government-owned venture capital company that offers capital and expertise primarily to Swedish companies that are seeking to establish or expand their operations in developing countries.

“Investments to expand the sales and service network are crucial to the success of Scania and our partners. Even today, workshop services are in great demand, since there are an estimated 5,000 Scania vehicles on the roads in Iraq,” Lundstedt says.

“Its rich supply of oil and gas makes Iraq one of the world’s ten wealthiest countries per capita. Iraq will be one of the fastest-growing economies during the coming decade. We hope that this investment not only supports Scania’s venture in the Iraqi market but can also persuade other Swedish companies to dare establish a presence in Iraq,” says Björn Blomberg, CEO of Swedfund.

Last edited by sheytanElKebir; December 1st, 2010 at 02:22 AM.
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Old August 5th, 2010, 04:37 AM   #2
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Great news !!!
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Old August 5th, 2010, 03:12 PM   #3
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nice, thanks for that article
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Old August 5th, 2010, 05:21 PM   #4
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http://issuu.com/itpbusiness/docs/pmv_74_01052010
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Old August 5th, 2010, 07:49 PM   #5
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very nice. at least its something real and a small start. current capacity is around 1500 trucks a year... I guess if the iraqi government brings in import restrictions then they can expand this massively, but I wouldn't hold my breath waiting for iraq's "government" helping local industry and workforce!
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Old November 29th, 2010, 11:32 PM   #6
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State Company for Automotives Industry
By:Sarmad Faez
State Company for Automotives Industry started to assemble fire fighting vehicles at the company plant where the company signed a contract with the Ministry of Interior to supply with 25 of these vehicles at a value of 11 billion and 600 million I.D.. Engineer Adnan Ahmed Razeen the company Acting Genral Director reported that the company signed a contract with Wasit State Company to supply with the company products from trucks and vehicles at a value of one billion and 96 million and 920 thousand I.D.
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Old November 29th, 2010, 11:38 PM   #7
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some more product news...









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Old November 30th, 2010, 12:12 AM   #8
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State Company for Automotives Industry, one of the Ministry of Industry and Minerals State Companies singed Memorandum of Understanding with Chinese Sheri Company to produce and assemble (10000) salon at the company plants. The company General Director clarified to MIM information bureau that this activity is considered as one of its kind in Iraq and a first step for producing such kind of industry to cover the local market need of salon cars adding that the company is about to end final negotiations with Renault French Company to sign 2 contracts between both companies to assemble trucks in Iraq. On the other hand State Company for Automotives Industry performed contracts with State sector to sell truck, fuel tankers, Reem Tourist buses and different kinds of caravans, these contracts were distributed over Hamorabi Company, Power Producing Company, Southern Fertilizers, Southern Refineries and Iraqi Digging Company. It is to be noted that State Company for Automotives Industry presented recently its new scania trucks to the local market through installment sale for State Institutions and Citizens on equal bases.


State Company for Automotives Industry
By: Atheer Naji
The company displaied its products of Cheery and Jeely salon cars and trucks in addtion to specialized vehicles of Fire fighting and garbag. Engineer Adnan Razeen the company General Director clarified to MIM information bureau that the displaied company cars at the fair are delivered directly within few days were the car number and identity will be handed over, adding that the company currently is producing (5) kinds of cheery and (5) kinds of jeely cars whose prices are ranging from (8-14) million I.D. Mr. Razeen referred that the company signed a contracts with Iranian Khodrow Company and Saipa Iranian Company and Levan Chinese Company to produce salon cars in adtion to signing a contract to produce trucks with Scania, Mercedes and Renault Companies as well as signing a contract to produce specialized equipments with Austrain Ampl and German Kemberlind companies.



the chery and geely cars which are built in iskandariya now.

chery (these are now very popular in iraq)








the GEELY cars that are made in Iraq now:
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Last edited by sheytanElKebir; November 30th, 2010 at 12:45 AM.
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Old November 30th, 2010, 12:14 AM   #9
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on a similar theme. the state company for tyre production Najaf made an announcement recently.


State Company for Tires Industry in Najaf
By: Huda Farhan
The MIM information delegate to the fair reported that the State Company for Tires Industry at Al Najaf distinguished of Agricultural Tire. Engineer Adnan Abas the company representative clarified that Agricultural Tire production line was established from the company allocations of the investment plan, this line operate at 50% of production capacity namely (25000) tires per year. referring that the company products are subject to quality control and international specifications.
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Old December 1st, 2010, 02:15 AM   #10
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at the current rate of expansion in iskandariya, Iraq will be self sufficient in vehicle assembly and perhaps 50-70% value add within the next 4-5 years.

This is not bad at all! and certainly far better performance by iskandariya than expected.
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Old December 1st, 2010, 02:23 AM   #11
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this project makes me very happy ! a real success story
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Old January 13th, 2011, 03:30 PM   #12
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The Iraqi Ministry of Industry and Minerals has said in a statement that the General Company for the Automotive Industry signed two contracts with two Chinese companies for the assembly and production of 7500 saloon cars and pick-ups. These cars annual value of sales is put at to 99.05 billion Iraqi dinars (about US$84 million).
In the statement, the Director-General of the company, Eng. Adnan Ahmed, said that the first contract was signed with Great Wall Motor China. It includes the production of saloon cars and pick-ups with a capacity of 4000 units per year. The plant will be built 50 km north of Hilla. It should be noted that Great Wall Motor Company Limited is a large multinational company, the first private whole vehicle automaker listed on the Hong Kong Stock Exchange.

The second agreement was signed with the Chinese company Gonow. This agreement includes the production of passenger cars and pick ups with a capacity of 3500 cars per year. According to Ahmad, the number of foreign companies specialized in manufacturing saloon and pick-up cars that signed contracts in Iraq amounted to eight with a combined production capacity of 25,500 cars annually.
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Old January 13th, 2011, 03:30 PM   #13
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so car production is expanding at Iskandariya even further! more brands and models added. very good news.
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Old January 13th, 2011, 03:50 PM   #14
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Quote:
Originally Posted by sheytanElKebir View Post
so car production is expanding at Iskandariya even further! more brands and models added. very good news.
Sheytan is Iskandyria safe now, is it shai area or sunnis?

Thanks
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Old January 13th, 2011, 04:11 PM   #15
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its the triangle of death.

but i always felt safe there.
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Old January 13th, 2011, 04:44 PM   #16
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so is it sunni area?
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Old January 13th, 2011, 06:05 PM   #17
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Yaba. It's kulshi oo kelashi! Lazigli bil Sunni loo shi3i.
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Old January 14th, 2011, 02:53 AM   #18
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I honestly ask because i want to buy a farm sometime in the future, somewhere were is safe, not too far from baghdad and SHIA area. Thats why i asked about Museyab, which is the most likely be the place i will end up

I want to own a ranch style place to relax, but it has to be safe
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Old January 14th, 2011, 01:51 PM   #19
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If you want a shia only area go to Suwayra in Wassit province.
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Old January 14th, 2011, 10:27 PM   #20
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hey wasta, I know that you mean no harm, but can you please layoff the sunni,shia stuff, we all know where too well where this road leads
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