Peru
Q&A

Scania bets on facilitating economies of scale for Peruvian mining clients

Bnamericas Published: Tuesday, November 29, 2022
Scania bets on facilitating economies of scale for Peruvian mining clients

Suppliers are well familiar with the needs of Peruvian mining companies to maximize output, lower costs, and reduce emissions. 

These will become even more important in 2023, which is expected to be a year when mining production will grow with the resumption of large projects but investment will contract amid rising uncertainty about the sector's outlook.

BNamericas spoke with Agustín Merea, mining division manager in Peru at Swedish truck and bus manufacturer Scania, about its focus on facilitating economies of scale for its clients.

BNamericas: The mining industry is one of Scania's strong areas in Peru. What is the makeup of the mining division?

Merea: Mining sector sales represent 40% of Scania's total. In addition to the sale of trucks, we have a specialist program that provides service and maintenance 24 hours a day, every day of the year, with technicians and a stock of spare parts at the mines. This gives us high mechanical availability, which is what the client requires. More than 90% of the sales in the mining division are made within the maintenance program. We have 11 offices with workshops and nine branches nationwide.

Regarding the mining vehicle fleet, we are the market leader as we have more than 500 trucks at mines operating with our service. By the end of 2022 we expect to exceed 800 trucks under this modality.

BNamericas: The sector is demanding greater efficiency and reduced emissions. What is your response to these demands?

Merea: The market will always look for an eco-friendly fleet. All the units we sell have a Euro 5 engine, which exceeds the Peruvian regulation, which is Euro 4. We also have trucks that operate with alternative fuels: liquefied and compressed natural gas. The savings compared to a diesel vehicle ranges between 30% and 50%. In Peru, Scania has 33% of the market for natural gas-run vehicles weighing more than 16t.

BNamericas: Is this accompanied by new vehicle launches?

Merea: Yes. We have introduced a new truck – the Scania Heavy Tipper 10x4 – which offers 42% more gross load compared to 8x4 vehicles from our competitors, and fuel savings of up to 8%. Its gross weight is 71t.

Our 'workhorse' is the Scania Heavy Tipper 8x4 truck line. They are well positioned in the market and based on their success we want to introduce the new truck. I think it will be something positive. We have already implemented a 10x4 solution at a mine in the country's north and we are in a demo process with another fairly mature operation. We have to show it in the field and there are mature mines migrating to such solutions.

BNamericas: You work with various mining companies in Peru. What is your view of the current business environment and how do you adapt?

Merea: We know that there are no new projects, but the operations that we have mapped out are still operating. This year we renewed a key contract in terms of sales, repairs and maintenance with an important mine in the north for a total of 54 8x4 trucks.

On the other hand, the last Perumin mining convention was another opportunity to strengthen relationships. The days that we were not at the event we were at business breakfasts, lunches and dinners. Although there are some delays of projects due to the current situation, the mines need to renew their fleets after a certain period. And this is where we see an attractive growth opportunity.

BNamericas: What is your outlook for the end of this year and 2023?

Merea: Overall at Scania Perú, we expect to grow 10% compared to 2021 and close the year with around 1,100 buses and trucks in the market. In 2023 we expect to sell 1,200 units. And in the mining sector we aim to grow our market share by 10%. 

We expect to enter six mining projects in which we will place an additional 255 trucks. So the vehicle fleet served by us will go from 800 units to more than 1,000 in 2023.

Our focus will be on contract renewals where we know that our 8x4 trucks are performing well. We know that in several of them, the 10x4 configuration is a good alternative for all that it brings: reduced environmental impact, greater fuel efficiency and larger load capacity.

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