KUEHNE & NAGEL, SEMBCORP AND USCO FORM GLOBAL LOGISTICS GROUP
Switzerland’s Kuehne & Nagel, its U.S.-based subsidiary USCO Logistics and Singapore-based SembCorp Logistics have formed a global partnership and a “contract logistics group” entity, following moves towards joint or shared ownership.
Last December, Kuehne & Nagel and SembCorp Logistics signed a deal that resulted in cross-shareholdings and cooperation between the two groups. In July, the Swiss group closed an agreement to take over USCO Logistics.
The three companies, each of which is a major player in its region, have effectively formed a joint group. They have aligned their strategies to become a leading player in the global contract logistics field, Kuehne & Nagel said.
Kuehne & Nagel commented that the three companies “have anticipated the increasing demand of multinational companies for a single source provider of global logistics and supply chain management solutions.”
A complete service range and a broad geographic scope, together with critical local market expertise, are crucial prerequisites, it said.
“Multinational companies are looking for a single source provider of global logistics and supply chain magement solutions – even more so in times of weakening economic conditions,” Kuehne & Nagel said.
The three groups control nearly four million square metres of warehousing and distribution space across the globe. They provide a range of services that covers transportation, warehousing, distribution and supply chain management.
Kuehne & Nagel said that the alliance partners would target the high-tech and consumer electronics industry, pharmaceutical and healthcare, consumer durables and the retail industry, as well as industrial goods. Their portfolio of value added services will be extended to operations like call center activities, light assembly and line feeding.
“We are confident, that the combined strengths of the partners and the integration strategy will lead to success,” says Klaus-Michael Kuehne, executive chairman of Kuehne & Nagel International AG.