TPG to invest 200 mln eur in China over 3 yrs to integrate business
TNT Post Group (TPG), the largest private post group in the Netherlands, will invest 200 mln eur in China over three years to integrate its business in the country, the Economic Observer reported, without naming its sources.
According to the newspaper, the Dutch company will integrate its postal, express and logistics businesses in China into TNT One, and announce part of its investment plans in the country on September 10.
The investment plans are part of the company’s expansion strategy in China before international express delivery companies are allowed to wholly operate businesses in China in November 2005, the paper said.
It quoted a source familiar with the investment plans as saying TPG plans to set up a joint venture in China, possibly with China Post, but the source declined to release detailed cooperation plans.
TPG has been delivering China Post’s express mail abroad from 1999, and the Dutch company has been cooperating with China Post in small express parcel mail delivery in eight Chinese cities including Beijing, Tianjin, Shanghai and Guangzhou.
The turnover in China Post’s express mail delivery business, EMS, rose 5.4 pct year-on-year to 5.15 bln yuan in 2003, according to company’s annual report.
Over the last decade, major global players, including Federal Express Corp, DHL, UPS and TNT, have grabbed a combined 62 pct market share in the international forwarding service sector in China from virtually nil.
(1 usd = 8.3 yuan; 0.83 eur)
