TPG signs up automotive Logistics Joint Venture in China
27 September 2001 - 16:28 CET
TPG NV announced today the signing of a joint venture contract with Shanghai Automotive Industry Corporation Group (SAIC) for automotive logistics in China. Total registered capital in the joint venture is USD 30 million. TPG and SAIC will own an equal 50% in the joint venture.
Shanghai Automotive Industry Corporation is China's leading automotive company, employing more than 60,000 people in vehicle and parts manufacturing and producing 250,000 automobiles per year, through joint ventures with Volkswagen and General Motors.
The joint venture will provide world-class logistics services to the automotive industry in China by offering state-of-the-art logistics technology, solution design and implementation. China is regarded as an important growth market for TPG. The joint venture is expected to become one of the key players in China's logistics industry.
The joint venture, the largest foreign investment to date in the China logistics service industry, is expected to be operational from March 2002. It is estimated that the JV will have an annual turnover of approx. EUR100 million with over 600 employees. The business of the joint venture will include inbound logistics together with finished vehicle distribution and after-sales part logistics.
"The JV with SAIC reinforces our global leader position in the Automotive Logistics business. China is on its way to become one of the most important world markets and it is key for TPG to have an early presence to understand its needs and requirements. Our goal is to add the most value to our present and future customers in the region", says Roberto Rossi, Managing Board Member of TPG responsible for its division TNT Logistics. "The combined strength of TPG and SAIC will better serve domestic and foreign joint venture automobile and parts manufacturing companies in China", says Mr. Fushing Pang, TPG's Vice President of Business Development, Asia.
