Bureaus Exclusive

Globe express services builds warehouse in Tianjin

By Wang Yu (China Daily Tianjin Bureau)
Updated: 2011-03-28 15:47

Tianjin - Globe Express Services (Overseas Group) and Tianjin Economic-Technological Development Area (TEDA) signed a Memorandum of Understanding today to invest $16 million in Tianjin Nangang Industrial Zone through its investment arm in Hong Kong, Classified Properties Limited. GES will build a warehouse of 24,000 square meters covering 50,000 square meters of land, and have signed agreement with chemical giant PPG industries to provide warehousing and distribution services upon completion of construction.

This marks the beginning of strategic partnership of the two companies: by providing warehousing and distribution service to PPG, GES enables the industrial giant to focus more on its core businesses while reducing supply chain cost and improving efficiencies.

"This is the first of a series infrastructure investment the company will make in China. This investment is in line with our long-term strategy: as we focus on the organic growth of the business, we also leverage our capital to capture expansion opportunities, which will ultimately provide unique value to our customers. We are very excited about the opportunities ahead, and remain focused on ways to grow strategically while enhancing the value of our businesses," Globe Express Services (Overseas Group) Chairman, Bahaa R. Hariri, commented.

PPG Asia Pacific General Manager Government Affairs and Business Development, Cathy Yan told China Daily: "We appreciate the willingness of the top management of GES to invest in this warehouse. Our facility in Tianjin has expanded from 40,000 sqm to 100,000 sqm, and we are seeking a partner with supply chain expertise. It will allow us stay focused on the core production function to produce more value to our customers and the local government."

TEDA Vice Chairman Ni Xiangyu welcomed the investment and pointed out the significance to Nangang: "GES is committed to building a state-of-the-art warehouse with the most advanced logistics technologies, and this can complement our infrastructure support to industrial companies in this zone. As a complex covering multiple industries, we need international third party logistics provider to provide professional supply chain and logistics support to make it easier for companies who want to invest here."

"We have been serving the second largest chemical company in the world in other areas of the world, and we believe Nangang is where we should be now for our sustained growth in the future. It is people who make a difference, through the officials of Tianjin and Binhai New Area, we see the optimistic future of Nangang and our investment here," Globe Express Services (Overseas Group) CEO Ziad R. Korban expressed confidence about this partnership and investment.

Globe Express Services (Overseas Group) offers well-rounded suite of logistics services to companies doing business in Asia, Europe, the Middle East, the Americas and around the world. Since 1974, the company has enabled our customers' supply chain success through ocean & air freight forwarding, overland transport, Customs brokerage & compliance consulting, cargo consolidation, warehousing & distribution, specialty cargo handling, and project logistics.

Founded in 1883, PPG Industries serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2010 were $13.4 billion. PPG shares are traded on the New York Stock Exchange.

As an integral part of Tianjin's Twin-cities & Twin-ports Strategy, the Nangang Industrial Zone is a dedicated chemical industrial park developed under the TEDA brand. Located in the south of Tianjin Binhai New Area, 45 kilometers away from Tianjin city proper, with planned area of 200 square kilometers, Nangang Industrial Zone will be built into a heavy chemical industrial base focused on Petro-chemical, Supporting Equipment Manufacturing and Logistics, and a port function complex as well.

Up to now, many Fortune 500 companies and local or multinational chemical giants including Dow Chemical, Petro China, Sinopec, Air Liquide, Veolia Environmental, etc. have decided to set up projects in Nangang Industrial Zone, including the Sino-Russia Joint Venture of 13 million tons/year Refining Project, SinoPec Crude Oil Reserve Base Project, Dow Chemical Logistics Center Project, etc. A slew of projects have started construction, with some of the projects already put into operation.