Hyundai automotive logistics provider sets up joint venture in Sichuan
KOREA's automotive logistics service provider, Hyundai Glovis, a multinational logistics company under the Korean automobile manufacturer Hyundai Motor, has signed a cooperation deal with an automobile manufacturer in southwest China's Sichuan province on setting up a joint venture company in Ziyang, a city in the province, Xinhua reports.
According to the agreement, the joint venture, Sichuan Glovis Logistics Company Limited, will have a registered capital of CNY77 million (US$12.54 million). Hyundai Glovis will hold 51 per cent of the joint venture while Nan Jun Auto Group, the local automobile manufacturer, will hold 49 per cent. The two will invest a total of CNY320 million on the joint venture.
Sichuan Glovis Logistics Company Limited will provide logistics service for automobile and parts for Hyundai Motor's Sichuan company in Ziyang city. The company will build a facility covering 20 hectares and will be able to add 400,000 vehicles later if demand warrants. The company can generate a revenue of CNY1.8 billion and CNY200 million's tax per year after becoming fully operational.
Hyundai Glovis exclusively provides global logistics service for Hyundai Motors. It has set up logistics facilities in six continents across the world, including Asia, America and Europe. In 2012, the company recorded a revenue of more than CNY70 billion.
Korean Consul General to Chengdu Chung Man-young said Hyundai Glovis' decision to set up joint venture in Sichuan is in line with the Korean government's latest policy.
Mr Chung said he hopes that the globalisation of Glovis will enhance competitive advantages of Hyundai automobiles that manufactured in Sichuan and that Glovis' strengths in logistics will bring success to the Hyundai's joint ventures in Sichuan. He also expressed hope the two parties seek further cooperation opportunities in other respects.
