Kerry Logistics will build a 753,000-square-foot logistics center in Zhengzhou, as the third-party logistics provider expands its reach in north-central China.
Construction on the facility in Henan Province’s main city, a road and rail hub, will begin in the second quarter and completion is scheduled in early 2013. Kerry joins Kuehne + Naglel, DHL, UPS and Panalpina in boosting networks in the region to tap the shift of production away from the costlier south and better tap growing domestic markets.
Kerry said its new Henan facility would target the electronics, technology, automobile, industrial and material science sectors.
“China’s coastal provinces have refocused to attract manufacturers of higher value-added products and there has been a migration of production to the central and western regions due to lower land and labour costs,” said Edwardo Erni, the company's managing Director of mainland China. “We see the potential to transform Zhengzhou into one of China’s manufacturing and processing hubs.”
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