Scania Korea shelves investment of $20m

Scania Korea Ltd., the local unit of Swedish truckmaker Scania, said Monday it has decided to suspend its investment of US$20 million in South Korea. The company had planned to complete a maintenance plant in Dongtan, a city located some 60 kilometers south of Seoul, by May 2014. Still, the company said the investment was put on hold, citing a request by its largest shareholder, Germany's Volkswagen, to improve profitability in its operation in South Korea. Scania Korea said it plans to break ground for the maintenance plant in Dongtan between 2015 and 2016 after making profits at 20 maintenance centers in South Korea and consulting with its major shareholders. Scania Korea said it sold about 300 units in the first six months of this year. It accounts for 12.2 percent of the dump truck market in South Korea. In July, South Korea's antitrust watchdog ordered Scania Korea to pay 17.6 billion won ($16 million) in fines for colluding with its rival truck manufacturers to fix prices