Kuehne + Nagel has announced a partnership with Sincero, a Chinese automotive logistics group, to invest in a joint venture focusing on contract logistics for the automotive sector. Kuehne + Nagel will hold majority share of the joint venture. This marks an important step by the company to further accelerate growth in China's automotive logistics market.
Gianfranco Sgro, member of the Managing Board, Kuehne + Nagel International AG, responsible for Contract Logistics, said: “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 seventy per cent serving major Chinese brands and Tier 1 suppliers.
Jiang Jun, Sincero’s Chairman of the Board: “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.”
Both parties agreed not to disclose the purchase price. The joint venture is subject to customary closing conditions and to clearance by the competent merger control authorities.