In recent weeks, Scania had made headlines in both Singapore and Malaysia. In both news, multi-million dollar deals have either been closed or in the process of being finalised. Let’s see what the deals are.
Scania Singapore’s general manager, Mr Norman Koh, said at yesterday’s opening ceremony: ‘Our new Senoko service centre is not only much bigger – almost twice the size of our old centre – but also better equipped, with new hand and diagnostic tools as well as other value-added services.’
He said the expansion was needed to help the company handle the increase in orders for Scania-assembled vehicles in Singapore and Malaysia.
‘For example, we have an order from SBS Transit for 900 buses, of which 400 still have to be delivered by the end of the year. And that is a major deal for us,’ he added.
Scania Singapore was set up in late 2003, but business was so brisk that the hunt for a larger centre began just two years later.
‘We did not expect that level of growth when we started in 2003, but we are happy that we can grow along with our customers,’ said Mr Koh.
The company employs about 55 staff, including technicians, engineers and administrative staff. Its headcount is expected to increase by 25 per cent by the end of the year.
‘We have put in a few new tenders and if we are successful, we expect to hire more this year…In any case, Scania Singapore has never retrenched any workers here,’ he said.
He declined to reveal the value of the deals that Scania has inked in recent years, but a person familiar with the matter said that its contract with SBS Transit was probably worth at least $300 million.
Mr Koh disclosed that Scania is in the process of completing a tender for a similar project. If the bid is successful, Scania will build and supply buses that carry the latest Euro-5 certification – an air pollution rating – to a large transport firm in Singapore.
Scania has won a tender for the supply of 152 low-entry city buses to the northern Malaysian island state of Penang. The order marks the biggest single order for the company to date, and is one of the largest single city bus deals in Malaysia.
The operator of these buses cited best quoted fuel consumption, high levels of reliability and availability, as well as a comprehensive service support as key points for Scania’s success in the tender.
The order in Penang is significant for the community. The Penang State Government is keen on upgrading and modernising the fleet of city buses – especially in the capital city of Georgetown on Penang Island, which was recently awarded “Heritage City” status by UNESCO.
“This new order for Penang, reaffirms Scania as a leader not only in the high-end interstate coach segment,” says Idros Puteh, General Manager of Scania (Malaysia) Sdn Bhd.
All 152 units will be from the Scania K-series, equipped with a 9-litre engine and 6-speed automatic gearbox, disc brakes, retarder and full wheelchair access – another first for Penang. Thirty buses will be built with a 12m body. The remaining 122 units will be in the shorter “midi” length of 10.6m, which is necessary to ply Penang Island’s inner city routes, famous for their narrow British colonial-era city streets.
The buses feature full aluminium bodywork that saves weight and holds up well against the harsh heat and tropical island-climate humidity – another first for city buses in Malaysia.