Kuehne + Nagel has entered into a partnership with Sincero, a provider of automotive logistics solutions in China, to invest in a joint venture specializing in contract logistics for the automotive sector.

According to Kuehne + Nagel, it will hold the majority share of the JV.

“Contract logistics for the automotive industry is a strategic focus area for Kuehne + Nagel globally and especially in China, the biggest automotive market,” said Gianfranco Sgro, member of the managing board at Kuehne + Nagel International AG responsible for contract logistics. “The joint venture confirms Kuehne + Nagel’s position as a leading international provider of automotive logistics in China. Following the recent launch of our digital platform for e-fulfilment centres in China this investment further strengthens our presence in Asia.”

Kuehne + Nagel has been developing its automotive footprint in the country by organically expanding its partnership with premium European brands. The company will now enlarge this footprint by almost 70% percent, serving major Chinese brands and first-tier suppliers.

“Establishing the joint venture with Kuehne + Nagel is a strategic move to comply with the irreversible globalization trend of economics and competitive landscape of the automobile logistics industry, thereby to complement each other’s strength in global network and local expertise,” said Jiang Jun, chairman of the board at Sincero.