M&M to expand in China
By Mu Jin (China Daily)Updated: 2006-12-28 11:02 Swiss logistics company M&M Militzer & Munch International Holding AG is to increase its turnover by 20 per cent in the Chinese market to US$35 million in 2006, following an average annual growth of about 23 per cent over the past four years.
The rapid growth is powered by its business development in Tianjin, North China's business hub, senior officials with the firm told China Daily.
With a registered capital of US$1.2 million, the company established a 75-25 joint venture with local player Tianbao Logistics in 1994 to extend its forwarding business, which has a presence in Europe, Russia, the Middle East and East Asia, to China.
In October, the firm teamed up again with its local partner to launch a new logistics centre for its Asia-Pacific region. The centre is the group's biggest logistics project in the East Asia, where it will focus on China.
"Development of this new facility could enable us to provide tailor-made one-stop services to our customers," said Dieter Buchinger, general manager of M&M Tianbao. The joint venture's registered capital is expected to hit US$5 million next year.
That, combined with the land purchase fund, will bring the firm's total investment up to US$10 million.
Its location in the bonded area of the city's free trade zone could boost its
attractiveness to clients hoping to enjoy significant customs and tax
reductions.
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