China’s Ministry of Commerce approves UPS/SF joint venture
China’s Ministry of Commerce (MOFCOM) has approved the planned joint venture between UPS and SF Holding, the parent of SF Express. The UPS/SF joint venture is initially focusing on delivery services from China to the US – and will then extend to other trade lanes in the future.
In a statement issued yesterday, UPS said the JV will allow the two companies to “leverage their complementary networks, service portfolios, technologies and logistics expertise”.
The JV follows on from a collaboration between the two companies 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.”