(CNN) -- A Swedish truck and bus maker that assembled trucks in Iraq during the Saddam Hussein era has signed "an agreement in principle" with the government to open an assembly plant next year.



Swedish truck and bus maker Scania is to reopen a former plant in Iraq.



The company, Scania, issued a statement on its Web site confirming the deal to produce 500 trucks ordered by Iraq, with work starting during the third quarter of 2009.



The work will be performed in the same Iskandariya factory south of Baghdad where the company's previous operation was housed. The operation comes under the auspices of Iraq's State Company for Automotive Industry.



The deal reflects the Iraqi government's efforts to rehabilitate an economy decimated by warfare.



"Scania has the necessary qualifications to satisfy the Iraqi government's desire to begin local production quickly. Assembly of the 500 trucks initially ordered is expected to employ about 500 people. The facility will be designed for the production of 3,000 vehicles per year," says Klas Dahlberg, vice president in charge of Scania's sales in the Middle East.



The company said Iraq had been one of its largest markets during the 1980s. The Iskandariya factory assembled 3,900 trucks in 1981, Scania said, and many of the trucks assembled there during that era remain in service.



The company said a memorandum of understanding signed by both sides specifies that Scania will work with an Iraqi distributor and "will assume responsibility for installation of production equipment as well as 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," Dahlberg said.
Who is set to return to Iraq? What did the company do? Era when trucks were assembled? Who made 500 trucks? What is Scania? What will be manufactured in the same factory? What is the Swedish company that is mentioned? Where are Scania vehicles from? During whose reign were trucks manufactured in Iraq? How many trucks are mentioned? Where is this Swedish company returning to?
Scania signed "an agreement in principle" Saddam Hussein Scania, bus maker 500 trucks Scania Iraq. Saddam Hussein 3,900 Iskandariya factory south of Baghdad
question: Who is set to return to Iraq?, answer: Scania | question: What did the company do?, answer: signed "an agreement in principle" | question: Era when trucks were assembled?, answer: Saddam Hussein | question: Who made 500 trucks?, answer: Scania, | question: What is Scania?, answer: bus maker | question: What will be manufactured in the same factory?, answer: 500 trucks | question: What is the Swedish company that is mentioned?, answer: Scania | question: Where are Scania vehicles from?, answer: Iraq. | question: During whose reign were trucks manufactured in Iraq?, answer: Saddam Hussein | question: How many trucks are mentioned?, answer: 3,900 | question: Where is this Swedish company returning to?, answer: Iskandariya factory south of Baghdad