Scania of Sweden, together with Iraqi partner Qanadeel al Rafidain, has signed a deal to deliver 4,000 vehicles to Iraq's Ministry of Industry and Minerals.
The vehicles will be assembled at the Iraqi government's Iskandariyah industrial complex south of Baghdad.
Deliveries will take place over five years.
In addition to the vehicles, Scania will deliver industrial expertise, tools and training, Scania said.
"This agreement is an important step in our continued cooperation with the Ministry of Industry and Mining," said Klas Dahlberg, vice president in charge of Scania's sales to independent distributors in the Middle East. "It demonstrates Scania's strong position in Iraq and our ability to provide customized solutions."
It is also important to Scania's long-term investment in the Iraqi market together with Qanadeel.
"The agreement means that Qanadeel can intensify the expansion of its service network and continue to invest in training its own employees," said Gustaf Sundell, Scania's country manager for Iraq.