SODERTALJE, Sweden, March 25, 2002 (PRIMEZONE) -- Scania (NYSE:SCVA) and Hino today entered a strategic cooperation agreement aiming at a long-term business alliance. The product ranges of Scania and Hino are largely complementary, so is the market presence of the two companies.
Hino focuses on medium-duty trucks from 6 to 16 tonnes gross weight, with extensions into light trucks below 6 tonnes and heavy trucks mainly optimised for weights up to around 30 tonnes, since gross weights in Japan rarely exceed 28 tonnes. These market segments are covered with the three Dutro, Ranger and Profia truck ranges. Hino has a strong presence in Asia and Oceania. Hino's market share in the medium/heavy truck segment in Japan is 30%.
Scania exclusively manufactures heavy trucks, i.e. gross weights above 16 tonnes. Gross weights of 40 tonnes are common in Europe. Train weights of 55-60 tonnes or more are frequently used in other markets, in particular Scandinavia and southern Africa. Scania's market presence is particularly strong in Europe, Latin America and Asia. Scania is also one of the strongest European heavy truck makes in Southeast Asia (except Japan) and the market leader in the heavy construction segment in South Korea.
Both Hino and Scania produce several types of bus chassis for coach, intercity and city applications. In both cases, due to the comparatively small volumes on the bus market, truck components must be used to achieve economy of scale.
"In several ways, Hino and Scania have similar positions on their respective markets, not least regarding quality and image," said Mr. Leif Ostling, Scania's President and CEO. "Our agreement aims at a business alliance, from which both companies will benefit. "The product and market complementarity holds great potential for both companies. We are currently evaluating areas where synergies would be useful."
The first step in the cooperation involves Scania tractor units, which will be marketed by Hino in Japan. Tractor units account for around 5,000 of the 45,000 heavy trucks that will be sold in Japan this year. Sales are still dominated by rigids (40,000), but the tractor market is gaining ground, especially at the heavy end. Under evaluation is the potential use of the Hino 7-litre engine in Scania trucks up to around 20 tonnes. This would enable higher productivity for some weight- sensitive applications, such as distribution and container haulage. An engine of this size would also be suitable for certain bus applications.
"The technical areas of cooperation will take longer to materialise. Both companies have extensive R&D expertise, including emission control, and have adopted the same fundamental principle of developing and manufacturing strategic components in-house. This paves the way for a very constructive alliance," concluded Mr Ostling.
More information from the press conference, see www.scania.com, Media services, Events.
Hino is a leading Japanese manufacturer of diesel trucks and buses. For 29 consecutive years, Hino has held the top position in the Japanese market for medium- and heavy-duty trucks. In 2001, 53,000 trucks and buses were sold worldwide. Net sales in the fiscal year ended March 2001 amounted to JPY 704,000 m. (EUR 6,060 m.). In the same year, Hino employed 22,600 employees and an operating income of JPY 5,650 m. (EUR 49 m.). More information about Hino can be found at www.hino.co.jp.
Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. With 28,300 employees and production facilities in Europe and Latin America, Scania is one of the most profitable companies in its sector. In 2001, turnover totalled SEK 53,000 million (EUR 5,700 m.) and an operating income of SEK 2,467 million (EUR 265 m.). Scania products are marketed in about 100 countries worldwide and some 95 percent of Scania's vehicles are sold outside Sweden. More information about Scania can be found at www.scania.com.
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