Scania has entered into an agreement with Octagon International Services Co Ltdregarding sales and service of trucks and buses in Myanmar, formerly known asBurma. The ongoing modernisation of the country and its infrastructure has ledto increased demand for trucks for goods and construction-related transportservices as well as for tourist and long-distance coaches.“If Myanmar continues to develop positively, the country can become one of themajor markets in the region for vehicles of Western European standard andquality levels,” says Henrik Henriksson, Executive Vice President, Head ofFranchise and Factory Sales. “Octagon expects to deliver 200-300 vehicles evenduring its first year as our distributor.”
Octagon International Services, a company in the Shwe Taung Group, is adistributor of world-leading makes of machinery and vehicles for theconstruction industry and is also responsible for providing service to thissector. By including Scania’s trucks in its product portfolio, the company willstrengthen its capability to deliver comprehensive solutions for the majorinfrastructure projects that are under way.
“Even today there is heavy demand for robust trucks with good load capacity fortransport services, for instance in construction of roads and power plant dams.The need for trucks for long-haul goods transport will also increase in linewith improved road standards and economic growth,” says Henriksson.
Concurrently with the expansion of the road network and continued urbanisation,demand is also increasing for long-distance coach services, particularly fortravel between the major cities of Nay Pyi Taw,Yangon and Mandalay. The growingstream of tourists visiting Myanmar has also contributed to the increaseddemand. Octagon expects to deliver some 100 buses and coaches during its firstyear as Scania’s distributor.
Octagon has recently opened a new service facility exclusively for Scania’svehicles in Nay Pyi Taw and is now building a Scania workshop inYangon. Theconstruction of a new workshop in Mandalay will also begin shortly.
“The investment that our distributor is making to build up a service networkwill provide Scania with a strong position in the market. Octagon’s investmentalso demonstrates that companies in the country believe in continued positivedevelopment in Myanmar,” concludes Henriksson.Scania is one of the world’s leading manufacturers of trucks and buses for heavytransport applications, and of industrial and marine engines. Service-relatedproducts account for a growing proportion of the company’s operations, assuringScania customers of cost-effective transport solutions and maximum uptime.Scania also offers financial services. Employing some 37,500 people, the companyoperates in about 100 countries. Research and development activities areconcentrated in Sweden, while production takes place in Europe and SouthAmerica, with facilities for global interchange of both components and completevehicles. In 2011, net sales totalled SEK 87.7 billion and net income amountedto SEK 9.4 billion. Scania press releases are available on www.scania.com