Sweden-based truck maker Scania said on Thursday it would open a plant in Dubai to harness strong demand in the region.

The firm, controlled by Germany's Volkswagen following a $4 billion deal earlier this month, said in a statement it would establish a factory for building truck and bus bodies and equipping complete vehicles.

The financial details of the investment were not disclosed, but the firm said the plant would have a capacity to customize about 1,400 vehicles per year. Operations at the factory would begin late this year, it added.

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