Toll Group, one of Asia’s leading integrated logistics providers, is acquiring 40% of Chinese automotive 3PL Tianjin Anda Logistics. Tianjin provides finished vehicle transport, storage and processing services for companies including FAW, Toyota, BMW, Peugeot-Citroën and Chery and in 2010, generated revenue of over RMB 400m ($62m).
The acquisition remains subject to Chinese regulatory approvals, which are expected to take three to six months. As part of the agreement Toll retains the option of moving to a majority stake over the next two years and to increase that further over five years.
“The Chinese automotive market is the largest in the world and offers immense opportunities for Toll to leverage our industry leading automotive capabilities,” said Toll Group managing director, Paul Little.
Over the next five years China is focusing on building in quality to the finished vehicle services on offer and is intent on developing new provisions for export activity, with an emphasis on joint ventures and an increase in outsourcing logistics activity. That includes working with providers that have experience in mature markets to upgrade the industry there.
At last month’s Automotive Logistics China conference, Wang Ming from China’s National Development and Reform Commission, said that the industry will now focus on supply chain information for efficiency and build on the recognition that supply chain management is the backbone of the industry. Read more here.