Saturday, August 25, 2018

European Freight Forwarding Group Ties Up with Chinese Automotive Logistics Specialist

Globalisation Produces Another Joint Venture
Shipping News Feature
CHINA – Swiss freight forwarding and logistics firm, Kuehne + Nagel has announced a partnership with Sincero, a Chinese automotive logistics group with a nation-wide operation coverage, to invest in a joint venture focusing on contract logistics for the automotive sector. Kuehne + Nagel will hold the majority share of the joint venture. Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics, commented:

“Contract logistics for the automotive industry is a strategic focus area for Kuehne + Nagel globally and especially in China, the biggest automotive market. The joint venture confirms Kuehne + Nagel’s position as a leading international provider of automotive logistics in China. Following the recent launch of our digital platform for e-fulfilment centres in China this investment further strengthens our presence in Asia.”

In recent years, Kuehne + Nagel has been developing a strong automotive footprint in the country by ‘organically expanding’ the partnership with premium European brands. The company will now enlarge this footprint by almost 70% serving major Chinese brands and Tier 1 suppliers. The Chinese corporate group Sincero focuses on five divisions: international freight forwarding, automobile logistics, integrated logistics, contract manufacturing and pre-assembly work for precision components for the automobile industry and customer support. Automotive logistics is the largest of these.

Established in 2006 and headquartered in Shanghai, Sincero operates eleven logistics centres in Shanghai, Wuhan, Guangzhou, Xi'an, Chengdu, Tianjin, Wenling, Hangzhou and Huzhou, including its newest spare parts facility at over 60,000 m2. Customers include the Dongfeng cooperations with car companies Honda, Peugeot-Citroen and Volvo also Kia and NIssan plus automotive parts suppliers Valeo, Faurecia, and Fleetguard. Jiang Jun, Sincero’s Chairman of the Board commented:

“Establishing the joint venture with Kuehne + Nagel is a strategic move to comply with the irreversible globalisation trend of economics and competitive landscape of the automobile logistics industry, thereby to complement each other's strength in global network and local expertise.”

The joint venture is subject to customary closing conditions and to clearance by the competent merger control authorities.