The unveiling ceremony for a planned auto plant for Sweden's Scania takes place in Rugao on Nov 28. [Photo/ntfabu.com]

The launch ceremony for a planned Chinese production plant for Swedish automotive giant Scania was held on Nov 28 in Rugao – a county-level city in Nantong, in East China's Jiangsu province – according to local media reports.

The planned Scania plant in Rugao, which will cost 5.3 billion yuan ($804 million), will have a production line, engine factory and a research and development center with a projected annual output of 50,000 commercial vehicles. It will be located in the Rugao Economic and Technological Development Zone.

According to Mats Harborn, President of Scania China Group, the first phase will be constructed in 2021 and the final assembly line is expected to go into operation in mid-2022.

The second phase will start construction in 2022 – including chassis, cabin, body and other production lines – and go into operation in 2024. Phase three is scheduled to start construction in 2025 and start operations in 2027.

Harborn said that after completion, the entire project is expected to generate an annual output value of 50 billion yuan.

Scania is a global company with operations in more than 100 countries and regions, that is  headquartered in Sweden.

The Rugao base is Scania's third production base and its first in Asia.