Following a major upgrade in 2013, Scania’s transmission components plant in Tucumán, Argentina, has increased its exports to Europe by 600 percent. The plant will celebrate 40 years of operation in 2016.

Truck, bus, and engine manufacturer Scania’s Tucumán production facility is located in Argentina’s north and produces a wide range of transmission components.

Scania has invested USD 43 million in the plant over the past two years with the aim of significantly increasing efficiency and boosting the plant’s potential production output. That effort is now yielding results, with the plant increasing the proportion of components that it exports to Europe by 600 percent, according to the company.

“We are reaping the benefits of all the work we did,” said Adolpho Bastos, managing director of the Tucumán plant. “Thanks to the changes and to the modernization initiatives that we implemented, we have gone from exporting 5 percent of our production volume to Europe two years ago to 35 percent today.”

The remaining 65 percent of output goes to Scania Latin America’s production unit in São Bernardo do Campo, Brazil. The facility manufactures transmission components including pinions, crowns, shafts and synchronized gears for use in Scania vehicles.

“Scania uses a global production system, so it’s essential for us to keep the Tucumán facility up to date and reflective of the brand’s highest standards,” saidPer-Olov Svedlund, president and CEO of Scania in Latin America.