China-based express delivery firm SF Holding and UPS Parcel Delivery Service, a subsidiary of US-based logistics company UPS, have established a joint venture called Global Connect Holding, according to China Money Network.
SF Express, a subsidiary of SF Holding, and UPS Parcel Delivery Service have each injected $5m into Global Connect, which will be based in Hong Kong.
Global Connect will combine SF Express’ network, which comprises more than 13,000 service points in China, with UPS’s international network that covers more than 220 countries.
Global Connect will also support the creation of new business-to-business and business-to-consumer products and services. The joint venture will initially focus on bolstering market access between China and the US, but will eventually expand further.
Alan Wong, group vice-president of SF Express, said: “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 is imperative that SF and UPS collaborate to revolutionise the logistics sector. Together, we aim to bring greater competitive advantages to our customers in China, to succeed globally.”