Scania Signs Major Contract in Iraq

As things slowly begin coming on track in war devastated Iraq, companies with enough courage and an intense spirit of adventure are trying to snatch whatever contract they might get in a country whose economy is surely to explode over the next decade or so.

One of the biggest truck and bus manufacturers in the world managed to strike gold this week in Iraq, as it signed a contract with the Iraq Ministry of Industry and Minerals which would see the delivery of no less than 4,000 vehicles over the next five years. The models are to be assembled at the Iskandariyah industrial complex south of Baghdad.

For Scania, the $470 million dollar contract is a huge one, but most importantly, it opens some new doors in a country that would badly need trucks and buses in the near future. In addition to the vehicles themselves, Scania is also bound by contract to deliver tools and provide training for Iraq's workers for the duration of the 5-year contract.

This is Scania's largest contract in Iraq since 1981, when it managed to sell 3,900 trucks in the country (at the time one of its largest markets). It also comes soon after the conclusion of the previous contract, which saw the delivery of 500 trucks in 2009.

“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,” said Klas Dahlberg, Scania vice president of sales to independent distributors in the Middle East.