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Scania cuts output amid slowing global growth

Swedish truckmaker Scania on Monday announced a cut in production by up to 15 percent starting next month due to lower demand caused by a global economic slowdown.

Scania cuts output amid slowing global growth

“Government financial problems in Europe and the US have now begun to affect economic activity and have led to hesitation among customers,” the company explained in a statement, adding it was seeing “deceleration in Europe, but also a slower pace of order bookings from the Middle East.”

As a result, “starting in November the company will lower its production rate due to falling demand. Compared to the end of the third quarter, at the global level this means that the vehicle production rate will be reduced by 10-15 percent,” the company said.

It stressed though that the production adjustment would be “handled within the framework of existing flexibility agreements between the company and trade union organisations.”

“We are not going to make any permanent staff redundant, but we are not going to extend contracts for around 900 of the 1,400 short-term staff within our European operations.”

Following the news, Scania saw its share price slump 2.81 percent in midday trading on a Stockholm stock exchange up nearly 1.00 percent.

Its main Swedish competitor Volvo, the world’s second largest truck maker, was also affected by the announcement, seeing its share price drop 3.00 percent.

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TRUCK

Sticky situation on Danish island after sugar truck topples

A transport carrying a sweet load caused traffic problems on Danish island Møn after falling onto its side.

Sticky situation on Danish island after sugar truck topples
Photo: Depositphotos

The truck swerved sharply to avoid an animal and subsequently overturned, spilling its sugary cargo across the road.

Monday morning commuters in and out of Stege, the rural island’s largest town, were forced to find alternative routes.

It is not known whether the truck was carrying Christmas treats.

But the spillage block the entire roadway between between Stege and Queen Alexandrine Bridge, which connects Møn to Zealand.

The clean-up was expected to be completed during the morning, South Zealand and Lolland-Falster Police tweeted.

Police were alerted to the accident at 1:31am on Monday.

“The driver told me he was trying to avoid an animal. Probably a deer or something else wild. The truck then skidded, causing the trailer to overturn. The truck itself did not overturn, but ended up on the verge of the road,” police duty officer Ole Hald said.

The driver was unhurt in the incident.

“But he is naturally a bit shaken up,” Hald said

The overturned trailer was packed with sugar, complicating the clean-up.

“We need special vehicles down there to suck the sugar out of the tanker and take it away. After that, we can begin to pull the trailer upright,” Hald said.

“It is both time and resource-consuming, so we don’t expect to be ale to open the road until (later) this morning,” he added.

Stege is the largest town on Møn and has a population of around 4,000.

READ ALSO: Ten of Denmark's most 'Instagram-able' places

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