Scania invests SEK 1.5 billion in energy-efficient foundry

In Sweden, Scania plans to invest about SEK 1.5 billion (a little over $176 million) in a new foundry in Södertälje, in order to triple production capacity and achieve a 50 percent reduction in energy consumption compared to the technology and methods used in the current foundry. Through more efficient materials handling and recycling, a sharp reduction will also be achieved in the transport need per manufactured unit. The foundry will be operated using electricity produced from renewable energy sources. The investment in a completely new foundry is one of Scania’s largest single investments in an entirely new industrial plant.

“In the ongoing shift towards a fossil-free society, even more energy-efficient combustion engines as well as combustion engines that operate on biofuels and gas will be needed. In particular for trucks and buses in long distance transport. The new foundry will be instrumental in providing such engines,” Ruthger de Vries, Executive Vice President, Head of Production and Logistics at Scania said in their press release.