- 26 May 2017
- Transport / Logistics Services
UPS and leading Chinese delivery company SF Express are to establish a new joint venture (JV) that will provide international delivery services.
At the outset the JV will focus on China – US deliveries, though it has been agreed this will extend to other destinations in future.
According to a statement, the two companies plan to “leverage their complementary networks, service portfolios, technologies and logistics expertise”.
The deal is subject to regulatory approval.
Ross McCullough, President of UPS Asia Pacific, commented: “This joint venture will support products that provide competitive benefits to our Chinese customers who trade or seek to trade internationally,” said
“Our combined efforts will result in new logistics products and services to simplify and accelerate B2B and B2C customers’ cross-border trade.”
Alan Wong, Group Vice President of SF, added: “China is leading the world in terms of e-commerce market size, growth, penetration and mobile business usage. Coupled with a rapidly growing and internet-savvy consumer base, it’s imperative that SF and UPS collaborate to revolutionize the logistics sector. Together, we aim to bring greater competitive advantages to our customers in China, to succeed globally.”
SF Express is one of China’s two largest delivery firms and this move should enable it to access the West through cooperation with UPS, one of the biggest all round logistics firms in the world. China is quite a closed market to Western firms in this business and UPS will no doubt significantly benefit from the JV.
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