YCH formalizes joint venture with GTG to offer full-fledged SCM solutions for China's third largest city, Guangzhou
Aug 15, 2012 12:00:00 AM
Guangzhou, CHINA, 15 August 2012
Leading Singapore-based logistics and supply chain management company YCH Group ("YCH") today signed the Joint Venture (JV) agreement with China's state-owned Guangzhou Transportation Group (�GTG�) to begin offering end-to-end supply chain solutions throughout Guangzhou in South China. This follows from the MOU that both parties signed on 27 April this year.
The signing of the JV agreement between YCH and GTG took place at the 4th Singapore-Guangdong Collaboration Council ("SGCC") meeting held at the Shangri-La Hotel this afternoon, and was witnessed by SGCC Co-Chairman Minister Lui Tuck Yew from Singapore and SGCC Co-Chairman Vice-Governor Zhao Yufang of Guangdong.
Under this collaboration, YCH will be managing the joint venture to operate the 4.5 hectare logistics and distribution hub within the strategically-located Tianhe District to offer the full suite of supply chain management services including warehousing, transportation and distribution. With an initial investment value of SGD 30 million, operations are expected to begin in the first quarter of 2014 and will adopt YCH's best-in-class IT systems and processes to deliver supply chain excellence to both local and MNC manufacturers and brand owners in Guangzhou.
GTG Chairman Mr Yang Jiansui and YCH Chairman & CEO Dr Robert Yap (1st row, rightmost) seal the JV deal with a handshake, as VIPs such as Singapore Minister Lui Tuck Yew and Guangdong Vice-Governor Zhao Yufang (centre, 2nd row) witness the significant moment at the 4th SGCC meeting.
In a previous statement by its Chairman Mr Yang Jiansui, GTG had chosen YCH as its strategic partner because of the Group's "extensive experience, strong management capabilities and excellent track record servicing various global brand owners and manufacturers across Asia". As an agency under the auspices of the Guangzhou Municipal People's Government, GTG will leverage on YCH to develop and enhance Guangzhou city's logistics infrastructure through YCH's City Supply Chain™ (CSC™) solution and its experience in fulfilling consumer demands for goods in urban cities.
YCH is also pleased to formalize the partnership with GTG to enhance its transportation and last mile delivery platform for achieving an expedited and deeper presence into the Southern China region. Chairman & CEO Dr Robert Yap reiterated, "Resonating with our distinct Asia strategy, YCH takes pride in being able to deliver the intrinsic value of true network and connectivity to our MNC customers with our firmly-established Pan-China network as they expand in this region and beyond."
Being the second CSC™ establishment in China after YCH's first implementation in Chengdu, the upcoming Guangzhou CSC™ is expected to increase supply chain efficiencies and better meet the mounting consumption needs for the densely-populated Southern China. As YCH continues to roll out its overall plans to build more City Supply Chain (CSC™) hubs across Greater China, YCH's projects in Chengdu and Guangzhou will soon be joined by impending CSC™ hub developments in other emergent cities such as Tianjin and Kunshan.
Customized for the mainland China market, which is facing various logistics and last mile delivery problems that are brought about by rapid population growth exceeding the speed of infrastructural developments, YCH's suite of CSC™ services for Chinese cities has been specially designed to improve food and product safety, quality and security; as well as to reduce air pollution, traffic congestion, and the overall logistics costs by optimizing cities� distribution networks.
About Guangzhou Transportation Group
Guangzhou Transportation Group Co., Ltd. (GTG) is a large state-owned transport enterprise commissioned by the Guangzhou Municipal People's Government. Its business scope of offerings includes passenger transportation, cargo freight management, station operation, city taxis, car rentals, vehicle maintenance, traffic rescue and recovery, driver training, professional wholesale markets, as well as passenger and cargo transport management spanning across Guangdong province and Hong Kong.
GTG is one of the largest road transport company in South China. As one of the top 100 Chinese transportation enterprises and top 500 Chinese enterprises in Guangdong Province, the Group has a total of nearly 5 billion worth of assets, and more than 700,000 square meters of operating space. With a headcount of more than 10,000, GTG runs a first-class domestic passenger transportation system in China, and is also well recognized for its freight management operations. Operating a total of 14 passenger stations, more than 200 tourist transportation routes and over 3000 taxis and 1000 passenger vehicles, GTG also holds shares to operate 200,000 tonnes of domestic coastal shipping fleet.
About YCH Group
Founded in 1955, YCH Group is the leading integrated end-to-end supply chain management and logistics partner to some of the world's largest companies, including Dell, Motorola, Samsung, LG, Exxon Mobil, Unilever, LVMH and Royal FrieslandCampina. YCH Group's suite of innovative award-winning end-to-end supply chain management solutions - Intribution™, Intrabution™, Retrogistics™, Y-Merge™ and V-Hub™ - employ cutting edge web-technologies that are best-in-class across industry clusters from consumer and electronics to chemical and healthcare, to deliver powerful competitive advantages for customers. The Singapore-based company currently operates throughout Asia-Pacific, including Malaysia, Thailand, Indonesia, Philippines, Hong Kong, Australia, China, India, Vietnam and Korea.
A strong proponent of innovation, YCH is recognized for its 7PL™ approach in seamlessly integrating supply chain strategy with execution to attain success in the SCM industry. YCH attained the highly-regarded Singapore Innovation Class in October 2005 and clinched Top Honours as Winner of the IDC Enterprise Innovation Awards 2010. As a forerunner in worldwide supply chain security, YCH is the first recipient of the ISO 28000: 2007 certification for excellent security management in the global SCM industry. YCH also won the prestigious National Infocomm Award 2008 for its RFID-enabled �High Performance Supply Chain Nerve Centre� and was conferred the 'Asian 3PL of the Year� award by Supply Chain Asia for four consecutive times from 2007 to 2010. More recently, YCH was named �Most Admired Large Enterprise (Innovation)� in the high-level ASEAN Business Awards 2010 and �Enterprise of the Year� at the Singapore Business Awards 2011.
More information about YCH can be found on www.ych.com
For media enquiries, please contact:
Ms Tien Yushan, YCH Corporate Communications at email@example.com or (65) 6417 2773 / 9772 7150