TPG'S china venture

TRAFFIC WORLD 8th October 2001
TPG’S CHINA VENTURE

By JOHN PARKER

$30 million joint venture with automotive group is largest foreign investment in China logistics Copyright 2001, Traffic World Magazine Paris

TNT Post Group and Shanghai Automotive Industry Corp. Group will start operating a logistics joint venture in China beginning next year. The 50-50 partnership, which will have an initial capitalization of $30 million, represents the largest foreign investment in the Chinese logistics industry to date, according to TPG. “China is on its way to becoming one of the most important world markets and it is key for TPG to have an early presence to understand its needs and requirements,” said Roberto Rossi, managing director of TPG’s TNT Logistics. SAIC is China’s largest automotive manufacturing company and employs more than 60,000 people in vehicle and parts production. Through joint ventures with General Motors and Volkswagen, the company produces about 250,000 automobiles a year. The joint venture, which will offer inbound logistics and finished vehicle distribution, as well as after-sales parts logistics, is projected to have revenue of about $100 million, according to the companies. It will employ 600 people when it begins operations next March and will become a key player in China’s logistics industry, according to Rossi. “The JV with SAIC reinforces our global-leader position in the automotive logistics business,” said Rossi. “Our goal is to add the most value to our present and future customers in the region.” Fushing Pang, TPG’s vice president of business development in Asia, says the venture will focus on “joint venture automobile and parts manufacturing companies in China.”