Rugao recently held a groundbreaking ceremony for 13 major industrial projects in fields such as auto parts, power equipment, new materials, and life health, with a total planned investment of 12.5 billion yuan ($1.71 billion).

The powertrain project of Scania, a Swedish heavy truck and bus maker, was included.

Scania, known as the "king of the road", set up its China production plant in Rugao. It is also one of the first wholly foreign-owned projects after China lifted the foreign equity limits on car-making.

The first phase of the project started last June. The second phase of the powertrain project is expected to be completed in 2025, with an annual capacity of 50,000 powertrains.

The two phases will form a complete heavy truck chain in Rugao. Ruthger de Vries, Asia president of Scania's industrial operations, said the powertrain project was a new investment based on market demand and industry trends. It shows Scania's commitment to the Chinese market and faster development, as well as its appreciation for Nantong's location, industry, and environment.