KUEHNE + NAGEL together with Chinese automotive logistics group Sincero are establishing a joint venture that will focus on providing contract logistics to the automotive sector
KUEHNE + NAGEL together with Chinese automotive logistics group Sincero are establishing a joint venture that will focus on providing contract logistics to the automotive sector. K+N will become the majority shareholder in the new company. K+N has been developing a strong automotive footprint in China by organically expanding its partnerships with premium European brands. Through this joint venture the Switzerland-headquartered company will be able to enlarge this footprint by 70 per cent serving major Chinese brands and tier one suppliers, reported London's Air Cargo News.
'Contract logistics for the automotive industry is a strategic focus area for K+N globally and especially in China, the biggest automotive market,' said board member Gianfranco Sgro.
'The joint venture confirms K+N'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.'
According to Sincero chairman Jiang Jun: 'Establishing the joint venture with K+N 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.'
Both parties have refused to disclose the purchase price. The joint venture is subject to approval by the competent merger control authorities.
