Immediate Supplier Actions Required –Middle east conflict and war between Israel-US and Iran

Dear Supplier,

Due to the rapidly evolving geopolitical situation in the Middle East and the potential impacts on global supply chains, Scania is closely monitoring developments that may affect the availability of raw materials, logistics capacity, and energy supply

Recent developments, including the escalation of the conflict involving Iran and disruptions affecting maritime routes in the Red Sea and surrounding regions, may create risks related to:
– Availability and price volatility of oil and petrochemical derivatives
– Availability of key raw materials such as helium, aluminium, and polymer-based materials
– Logistics delays due to rerouting of vessels, port congestion, and reduced maritime capacity
– Increased transportation and availability constraints in energy supply impacting industrial production

As a key partner in our supply network, we expect all suppliers to proactively assess and manage potential risks to ensure uninterrupted supply to Scania.

Scania’s priority is to safeguard continuity of supply and protect the stability of our production operations. Suppliers are therefore required to conduct immediate risk assessments and implement mitigation measures where applicable.

Supplier Expectations

Suppliers are expected to take all reasonable and proactive actions to ensure continuity of supply to Scania, including:

1. Risk Assessment – Evaluate exposure to disruptions in raw materials, Tier‑2, and Tier‑n supply chains.

2. Supply Continuity Measures – Secure alternative sources and ensure contingency production capacity.

3. Logistics Planning – Evaluate alternative logistics routes to mitigate Red Sea disruptions.

4. Energy Supply Risk Management – Assess exposure to electricity and energy price spikes.

5. Communication and Transparency – Immediately notify Scania of any risks impacting deliveries.

Force Majeure Considerations

• Scania expects suppliers to apply robust and proactive risk management practices in line with industry standards.
• Claims of Force Majeure will not be accepted where disruptions could reasonably have been mitigated through proactive risk management, contingency planning, or supply chain diversification.
• Suppliers remain responsible for implementing appropriate measures to ensure supply continuity and minimize disruption risks.

Scania values the strong partnerships we have built with our supplier base and appreciates your collaboration in ensuring supply chain resilience.

Kind regards,

Scania Procurement Supply Chain Resilience & Risk Management