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TNT Logistics plans to make China its largest market outside of Europe, by enlarging local financial and human resources, despite fierce competition in the Chinese market, said Dave Kulik, Group Managing Director at TNT Logistics.
The group announced it will invest 250 million euros (US$303 million) in China in the next three to five years to develop its logistic facilities and train more employees.
The company's senior managers did not reveal specific uses for the investment.
Kulik said further investment will be made to double its yearly sales in China by 2010.
TNT Logistics obtained sales of US$220 million from the Chinese market last year, representing five percent of its global turnover.
"We will adopt measures to push forward our business in China by acquisition and integration as part of our globalization," he said.
Since 2000, TNT Logistics has carried out an expansion strategy by making acquisitions of CTI Logistics in the United States, Taylor Barnard in United Kingdom, ALS/Advanced Logistics in Italy and Cargo Tech in Turkey.
"China's potential is great but comes with corresponding challenges and risks which will be tapped through integration with Chinese partners," he said.
TNT Logistics has now become the leading automotive logistics provider in China through a joint venture with the Shanghai Automotive Industry Group.
"The joint venture is a good way to rapidly expand our business in China. We bring technology to China, while our Chinese partners help smooth the venture's relations with the outside," he said.
Jeff Hurley, managing director of TNT Logistics North America, said TNT Logistics intends to introduce its successful models in North America to China, which has become the most important market in its global strategic plan in the next several years.
TNT established two automotive distribution centres in Shanghai: one at Pudong's Jinqiao for Shanghai GM and the other at Jiading for Shanghai Volkswagen. A large distribution center is also operating in Xi'an, Shaanxi Province in Northwest China.
Ken McCall, CEO of TNT China, said the company is expected to need 30,000 employees in China within five years, 10 times its current figure.
"We have made co-operations with local universities to find and train our future staff" McCall said.
TNT launched its school at Shanghai Jiaotong University last weekend to train 3,500 future employees by the end of next year.
(China Daily December 2, 2004)
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