Legend Group Holdings Co., one of China's leading corporations, and APL Logistics (APLL), the logistics arm of the NOL Group, have announced a joint venture to provide supply chain services for China's IT businesses.
The two companies signed a shareholding agreement in Beijing Monday for a joint venture forming a partnership between Legend Group Holdings Co. and APLL.
The new enterprise, as a neutral business platform, will offer its expertise to provide supply chain services to all IT manufacturing and sourcing companies that wish to establish and expand their capabilities in post-WTO China.
The scope of the business includes domestic and international ocean, land, inland waterways and air transportation, freight forwarding, warehousing and customs house brokerage. It also extends to after sale services such as "reverse logistics" which deals with returns.
"There is great potential in logistics industry," said the President of Legend Group Holding Co. Liu Chuanzhi, who hopes by combining the two companies' expertise, the partnership will not only provide specialist logistics support to the IT sector in China, but also offer a significant competitive advantage to China's IT businesses.
Flemming Jacobs, Group President and CEO of NOL Group, parent of APLL, said that the joint venture company will "give overseas companies access to the Chinese market and Chinese businesses access to the same powerful logistics tools as their global competitors."
It is learned that APLL will invest US$6.5 million into the joint venture.
(People's Daily June 25, 2002)