Logistics solutions giant Brambles is the latest to take a significant step into the booming Chinese market
By <a href="mailto:rebecca.byfield@aussieicon.com“>Rebecca Byfield | January 13, 2012
Logistics solutions giant Brambles is the latest to take a significant step into the booming Chinese market with the formation of a Hong Kong-based advisory board that will help spearhead its growth plans in the Asian region.
Brambles CEO, Tom Gorman says the pallets and pooling group believed it was possible for revenues from its containers pooling business to rise above $1 billion over the next seven years.
Gorman wants to see the company return to its roots as a supplier of pallets servicing supply chains.
According to Gorman, the company is set to invest $550 million into organic growth investment opportunities in re-usable plastic crates, containers and in emerging markets.
But Gorman is most excited about the growth market into China.
“The opportunity there is enormous for us,” he says. “We have a great market position in terms of first-mover capability.”
“From a leadership point of view, China attracts more than its fair share of leadership attention here but that is because the size of the prize is potentially so large. We are making sure we get the strategic foundation set in the right way.”
Three other members will join the advisory board. DHL Express Asia-Pacific CEO Jerry Hsu, Western Union
Asia Pacific Senior Vice President Drina Yue and Frank Wong, President of Scholastic Asia and former Managing Director of Pepsico Foods China and Nabisco China.
“All these folks have direct responsibility for China operations today,” says Gorman.
Last year, China Merchants Group paid $589 million for Australia’s second-largest pallet maker, Loscam, highlighting the potential of the Chinese market for logistics companies.