Scania has entered into a cooperation agreement with Iraq’s Ministry of Industry and Minerals to deliver 4,000 vehicles worth SEK 3 billion during a five-year period, together with its Iraqi partner Qanadeel al Rafidain. The vehicles will be assembled at the government’s Iskandariyah industrial complex south of Baghdad.
In addition to the vehicles, Scania will deliver industrial know-how, tools and training during the period of the agreement. The agreement will generate jobs in the country’s industry, which is important.
Collaboration with Sweden’s official representatives in Iraq has been vital in creating the agreement, which was signed at the Ministry of Industry and Minerals in Baghdad in the presence of Carl Magnus Nesser, Sweden’s Ambassador, and Roland Sossi, head of the Swedish Trade Council in Iraq.
“This agreement is an important step in our continued cooperation with the Ministry of Industry and Mining. It demonstrates Scania’s strong position in Iraq and our ability to provide customised solutions,” says Klas Dahlberg, Vice President in charge of Scania’s sales to independent distributors in the Middle East.
It is also important to Scania’s long-term investment in the Iraqi market together with its local partner Qanadeel.
“The agreement means that Qanadeel can intensify the expansion of its service network and continue to invest in training its own employees,” says Gustaf Sundell, Scania’s Country Manager for Iraq.
Iraq’s State Company for Automotive Industry (SCAI), which is part of the Ministry of Industry and Minerals, is historically one of Scania’s most important customers. The last of 500 trucks ordered as part of a 2009 agreement between Scania and the Ministry were recently delivered.
In the early 1980s, Iraq was one of Scania’s largest markets. At the peak, 3,900 trucks were sold during a single year (1981).