UPS plans major investment in China after ending Sinotrans pact
United Parcel Service Inc plans major investments in China’s fast-growing parcel delivery market as it prepares to part company with its long-time partner Sinotrans, UPS Asia Pacific president Ken Torok said.
UPS, which is paying Sinotrans USD100m to end its relationship, will add 500 more UPS vehicles by December 2006 and build an aviation hub in Shanghai by 2007.
‘We will greatly increase investment in China,’ he said without giving details.
Under the agreement, UPS will take direct control over agency operations from Sinotrans in five major cities by January. It will then add another 18 locations which cover over 200 cities by the end of next year.
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