Switzerland-based global transport and logistics company, Kuehne + Nagel has recently announced a new partnership with the Chinese automotive logistics group, Sincero. Under the new agreement, both companies will offer nation-wide operation coverage and invest in a joint venture with a key focus on contract logistics for the automotive industry. The majority share of the new joint venture will be held by Kuehne + Nagel.
Member of the Managing Board of Kuehne + Nagel International AG, Gianfranco Sgro who is responsible for Contract Logistics, had this to say about the new partnership, “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 center’s in China this investment further strengthens our presence in Asia.“
Over the past few years, Kuehne + Nagel has been developing and growing their automotive footprint in China through organically expanding partnerships with premium brands from Europe. With this new joint venture, they will further grow their footprint by nearly 70% providing services to major Chinese brands and Tier 1 suppliers.
Chairman of the Board for Sincero, Jiang Jun said, “Establishing the joint venture with Kuehne + Nagel is a strategic move to comply with the irreversible globalization trend of economics and competitive landscape of the automotive logistics industry, thereby to complement each other’s strength in the global network and local expertise.”
Both companies agreed not to disclose any financial details about the partnership.