News

Wincanton has agreed a 50/50 joint venture with Hong Kong-based Kerry Logistics to provide an international supply chain service.

The deal, signed last week, means Wincanton can offer its customers goods storage in the Far East, and the access to Kerry Logistics' forwarding arm means that goods can now be shipped from the Far East to the UK, where Wincanton arranges the distribution.

Martin Taylor, managing director for Wincanton's retail division says the joint venture came out of increasing customer demand.

He tells Motor Transport: "Increasingly, our customers in Europe are going directly to the Far East to buy their products. Wincanton hasn't got any warehouses in China, but Kerry has."

Wincanton partnered with Kerry after visiting eight logistics companies in China. Despite its base in Hong Kong, Kerry has "good connections," with China and "fantastic warehouses," says Taylor.

"What we're trying to do is offer a full supply chain from the manufacturing plant in the Far East to the warehouse in the UK," he adds.

The joint venture was announced within Wincanton's pre-close season trading update for the year to March 31. The company says results are "in line with expectations".