STOCKHOLM - Swedish truck maker Scania said on Wednesday it would build assembly plants in Algeria, Iran and Taiwan to meet rapidly growing demand from non-European markets.
The total investment was small -- between 10-20 million crowns ($1.25-$2.5 million) -- a spokesman said, but the move allows the group to expand its foothold in potentially important areas.
The expansion outside Scania's two traditional markets of Europe and Latin America comes after the firm said in April the risk of subdued demand for trucks and busses was increasing.
Scania, the world's most profitable maker of heavy trucks, said in a statement the plant near Algiers would assemble trucks and busses with an initial capacity of 300 annually.
The Taiwanese facility will assemble bus and truck chassis with at an expected rate of 400 to 500 a year, and the factory in Iran will assemble 200 busses annually.
On Tuesday, Scania also opened a new facility in South Korea.