K+N in Chinese automotive logistics joint venture
24 / 08 / 2018
Kuehne+Nagel (K+N) is linking up with Sincero, a Chinese automotive logistics group, to form a joint venture focused on contract logistics for the automotive sector.
Switzerland-headquartered K+N will hold a majority share in the new entity, which will increase its automotive logistics footprint in China for European brands by 70%.
Gianfranco Sgro, member of the Managing Board of K+N International, responsible for contract logistics: “Contract logistics for the automotive industry is a strategic focus area for K+N globally and especially in China, the biggest automotive market.
"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.“
K+N has been developing a strong automotive footprint in China 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 one suppliers.
Jiang Jun, Sincero’s chairman of the board, said: “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 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.
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