UPS & SF Holding Joint Venture Receives Regulatory Approval In China
September 28 2017 - 8:30AM
Today UPS (NYSE:UPS) and SF Holding (SZSE:002352), the parent
company of SF Express, announced approval of their planned joint
venture by China’s Ministry of Commerce (MOFCOM). The JV enables
UPS and SF to collaborate on development and provision of
international delivery services from, initially, China to the U.S.
and, in the future, to other trade lanes. The JV approval is a
positive development for international trade and allows the two
leading companies to leverage their complementary networks, service
portfolios, technologies and logistics expertise.
UPS is the world’s largest express delivery company and a
leading global supply chain integrator. SF is a market leader in
express delivery in China, with extensive China-wide network
coverage, comprehensive service capabilities, and the highest brand
recognition in the Chinese small package industry. The newly
approved joint venture is a continuation of UPS and SF’s
collaboration that began in 2015, when UPS Worldwide Express®
service was made available at SF’s Heike retail stores in Shanghai
and Shenzhen.
“We’re delighted to help the many customers in China who will
now be in a position to trade more easily across borders and better
compete on the global stage thanks to product offerings from the
UPS and SF joint venture,” said Ross McCullough, President of UPS
Asia Pacific. “UPS has an aggressive multi-year growth plan in
China. Aligning our two networks will increase our market presence
by connecting China’s consumers and manufacturers to the U.S. and
around the world with logistics solutions that strengthen
cross-border B2B and B2C capabilities. This JV is highly symbolic
of UPS’s confidence in long-term growth opportunities in China.”
“The establishment of this joint venture boosts global expansion
of Chinese enterprises beyond local borders,” said Alan Wong, Group
Vice President of SF. “SF and UPS are able to maximise the
strengths of both companies to continuously innovate and create
more competitive products that deliver strong value for
customers.”
The alignment of UPS’ and SF’s transportation networks provides
customers with greater coverage, additional routing options,
increased capacity, and more choice in transit times and service
options.
With the joint venture approved, customers seeking an economical
solution for less urgent shipments can opt for Global Reach Plus,
the new joint venture deferred express product that features the
full visibility and reliability of a premium express service.
Customers are expected to gain:
- Time-in-Transit Reliability with 5-7 business days
deliveries jointly powered by UPS & SF’s combined
networks
- End-to-End Visibility: Visibility from door-to-door
using SF’s tracking tool, integrated with UPS’s industry-leading
technologies
- Single Point of Contact for customer service via SF;
shipment pick-up by SF at the origin & delivery by UPS at the
destination
- Flexibility: Late order cut-off time for shipment
pick-ups, and multiple delivery options including the use of UPS My
Choice® and UPS Access Point™ network
The joint venture supports these highly competitive joint
service offerings on the China-to-US lane, with planned expansion
to markets in the rest of the world. Both companies can now utilize
their own assets to boost operational effectiveness and efficiency
for businesses while aligning business processes in order to
provide seamless customer care for all parties shipping out of
China.
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About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the web
at ups.com and its corporate blog can be found
at longitudes.ups.com. To get UPS news direct,
follow @UPS_Asia on Twitter.
About SF Holding
SF Holding (SZSE:002352), the parent company of leading
integrated express logistics service provider in China, SF Express,
offers high-quality logistics services to the full value chain,
including production, supply, sales and distribution. Focusing on
customer needs, SF leverages big data and cloud computing
technology to provide integrated logistics services composed of
warehouse management, sales forecasting, big data analysis and
settlement management. As an intelligent logistics operator with a
large scale network, SF has access to domestic and international
logistics networks, including air transportation, substation,
ground transportation, customer services and industrial parks.
Glenn Zaccra
404-828-4663
gzaccara@ups.com
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