Kuehne + Nagel has signed a partnership with Sincero – a Chinese automotive logistics group with a nationwide operation coverage – to invest in a joint venture (JV) focusing on contract logistics for the automotive sector.
Both parties said they agreed not to disclose the purchase price. The JV is subject to customary closing conditions and to clearance by the competent merger control authorities.
Kuehne + Nagel will hold majority share of the JV and member of the managing board responsible for conrtact logistics, Gianfranco Sgro 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, the Swiss freight forwarder 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.
Sincero’s chairman of the board, Jiang Jun said : “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.”