KUEHNE + Nagel has announced a partnership with Chinese automotive logistics group Sincero to invest in a joint venture focusing on contract logistics for the automotive sector.
K + N is to hold a majority share.
Board member Gianfranco Sgro said contract logistics for the automotive industry was a strategic focus area for this business and especially in China.
“The joint venture confirms Kuehne + Nagel’s position as a leading international provider of automotive logistics in China,” Mr Sgro said.
“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, K + N has reported developing a strong automotive footprint in the country by expanding partnerships with European brands. The company is to now enlarge this footprint by almost 70% serving major Chinese brands.
Sincero chairman Jiang Jun said establishing the joint venture with Kuehne + Nagel was a strategic move to comply with “the irreversible globalisation trend of economics and competitive landscape of the automobile logistics industry”.
Both parties have agreed not to disclose the purchase price.
The joint venture is said to be subject to customary closing conditions.