Chinese express delivery firm SF Holding, the parent company of S.F. Express, has announced the establishment of a joint venture with UPS Parcel Delivery Service Ltd., a subsidiary of U.S. based United Parcel Service, Inc., to expand shipping service from China to the U.S..
Under the terms of the agreement, the 50-50 joint venture, named Global Connect Holding Ltd. will be based in Hong Kong. S.F. Express and UPS will each inject US$5 million into the new company.
The new entity combines S.F. Express’s extensive Chinese network, encompassing more than 13,000 service points in China, the world’s largest and fastest growing package delivery market, with UPS’s market-leading globally integrated network, covering more than 220 countries.
The companies said Global Connect will establishes a platform to support the creation of new-to-market business to business and business to customer products and services enhancing market access, initially between China and the US, with plans for further global market expansion. Customers in China will be offered more international shipping options, transit times and services, enhanced visibility and control of international shipments, and cohesive customer care.
“China is leading the world in terms of e-commerce market size, growth, penetration and mobile business usage. Coupled with a rapidly growing and internet-savvy consumer base, it’s imperative that SF and UPS collaborate to revolutionize the logistics sector," said Alan Wong, group vice president of S.F. Express. "Together, we aim to bring greater competitive advantages to our customers in China, to succeed globally.”
Founded in 1993, S.F. Express completed its back-door listing on the Shenzhen Stock Exchange this January after conducting a reverse merger with Maanshan Dingtai Rare Earth & New Materials Co., Ltd. Earlier this month, it opened service centers in Vietnam and Thailand and continues to expand in Asia.