The cold chain may be the weakest link in distribution in China, and specialty U.S. trucker C.R. England sees that as an opportunity.
England Logistics, a unit of Salt Lake City-based C.R. England, entered China in 2008 after purchasing international freight forwarder Dynalink. The company recently announced plans to operate a cold chain distribution network in China,
The company was granted Wholly Foreign Owned Enterprise status by Chinese authorities, allowing it to operate in the country without agents or a joint venture partner.
The company won the license not long after a spate of problems in food distribution, including tainted milk, led to greater oversight and a recognition of the importance of specialized handling as supply chains grow longer.
The company sees great opportunities in a country where food safety is a growing concern and demand for branded food is growing rapidly, said Josh England, president of England Logistics.
C.R. England plans to expand by acquiring a Chinese company. It’s a far more viable option than organic expansion from square one, but it presents its own risks and challenges. The language gap poses certain barriers to due diligence, and there are different business standards to contend with.
“We started with long list of companies, and we have narrowed it down to one,” England said.
Contact David Biederman at email@example.com.