Toll cements presence in Chinese automotive market
Toll continues expansion, taking a 40 percent stake in Tianjin Anda Logistics to cement presence in the growing automotive market
June 2, 2011Toll Holding is continuing its Asian expansion, buying a 40 percent stake in Tianjin Anda Logistics to cement its presence in the growing automotive market.
Toll pounced on Tianjin Anda after a 32 percent growth in the Chinese automotive market in 2010 netted record sales of 18.6 million vehicles. Toll says the third party logistics service provider, one of the largest in China, generated more than $A58 million in revenue in 2010.
Under the deal, Toll has the option of moving to a majority stake over the next two years and increase it further over five years.
Toll Managing Director Paul Little says the acquisition will allow the company to leverage its capabilities in the world’s largest automotive market.
"Importantly for Toll Group, manufacturers in China are increasingly demanding a more efficient and effective supply chain. Our joint venture with Tianjin Anda allows us to partner with a leading local company to provide those services in a proven and cost effective manner," he says.
The 40 percent stake will be subject to Chinese regulatory approvals, which Toll expects will take three to six months to complete.
Little says Anda provides finished vehicle transport, storage and processing services for the likes of Toyota, BMW, Peugeot and Citroen.
"It is based in the city of Tianjin, a major manufacturing centre and
China’s largest import terminal, which is close to Beijing and well connected to the main national highways," he says.
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