“Scania has the necessary qualifications to satisfy the Iraqi government’s desire to begin local production quickly,” said Scania’s Middle East sales vice president Klas Dahlberg in a statement.

The plant is expected to employ 500 people and will initially produce 500 trucks ordered by Iraq as a part of the deal.

When completed, the plant is expected to have the capacity to produce 3,000 vehicles a year.

In a memorandum of understanding signed by the between Scania and the Iraqi government, the company will also work with an Iraqi distributor and will take charge of installing production equipment and employee training.

“In collaboration with our Iraqi distributor, we will also invest in the establishment of a service network in the country. Even today, there is a great need for workshops to take care of vehicles that operate in international traffic to Iraq,” said Dahlberg.

According to the company, Iraq was one of Scania’s largest markets in the early 1980s and many of the trucks produced there during the 1980s are still in service.