Hyundai Glovis agrees to set up logistics joint ventures with China's Changjiu Group
SEOUL, AJU - To expand its clout in the world's largest auto market, Hyundai Glovis, a logistics arm of South Korea's Hyundai auto group, agreed to establish two separate joint ventures with the automobile and logistics arms of China's Changjiu Group, which is involved in the transportation of finished and used vehicles.
The South Korean company said Thursday that investments would be made through its branch in Beijing into the joint ventures under an agreement signed at the Seoul head office of Hyundai Glovis, which set a five-year goal of distributing 70,000 used cars in China by 2024. A pilot project to sell used cars would be launched next year in Guangxi, an autonomous region in southern China. The logistics joint venture for finished cars would target Southeast Asia.
In May, the two companies agreed to find new business opportunities and expand cooperation in local and global logistics businesses. Hyundai Glovis' car carriers and Changjiu's finished vehicle transportation network would be combined. They would expand their railway logistics business linking China and Europe.
In October, Hyundai Glovis forged a strategic partnership with United Logistics, a Chinese logistics company which has been engaged in the transportation, storage and export of finished cars with a focus on northeastern China. The joint venture will be headquartered in Yancheng.