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.
In recent years, Kuehne + Nagel has been developing an automotive footprint in the country by organically expanding its partnership with European brands. The company will grow this footprint by almost 70% through the acquisition by serving Chinese brands and Tier 1 suppliers.
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.
“Contract logistics for the automotive industry is a strategic focus area for Kuehne + Nagel globally and especially in China, the biggest automotive market.” Said Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel, responsible for Contract Logistics. “Following the recent launch of our digital platform for e-fulfilment centres in China this investment further strengthens our presence in Asia.”
Source: Kuehne + Nagel
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