(Yicai Global) Aug. 13 -- China's private courier giant SF Holdings will join hands with US cold chain logistics firm Havi Group to pursue a leading position in the emerging temperature-controlled supply chain market in China.
SF will set up a joint venture with Havi to operate a part of the latter's existing cold chain in China's mainland, Hong Kong and in Macau, the Shenzhen-based company said in a statement. SF Holding will be the majority shareholder of the JV.
Expanding into cold chain logistics is one of the key milestones for SF on its way to becoming a one-stop logistics solutions provider and the establishment of the JV will be the largest investment in this field, SF said, without disclosing the size of funding.
"The main reason why we choose to enter a joint venture with Havi is because it boasts world-class cold chain technology and extensive experience in this field," said SF'S Chairman Wang Wei, referring to Havi's long-term business relationship with its main client McDonald's. Illinois-based Havi has high safety and quality standards that it has developed over 20 years of service in China.
Overseas countries boast sophisticated cold chain logistics technologies, while the market is still an emerging industry in China, with a large number of smaller firms, Xu Yong, chief advisor at online courier consultancy Cecss, told Yicai Global, adding that leading players are set to emerge in the next three to five years. "Forming a JV with Havi can help SF to build upon foreign cold chain technologies and management methods."
Last week, an overseas unit of SF also announced it will invest USD10 million in a new US private equity fund and startup financier IX in order to get access to key technologies.
Editor: Emmi Laine