The sale of TNT’s domestic delivery business in China earlier this year as part of its global restructuring program will not disrupt its trucking and air links to the country, the integrator claims.
TNT is currently reshaping its business after UPS abandoned a €5.2 billion bid for the company earlier this year in the face of strong opposition from the European Commission. The “profit improvement plan” promises to consolidate services, optimize infrastructure and generate €220 million of recurring savings. Some 4,000 jobs are expected to be shed in the process.
One key plank of the program was the sale of the company’s China domestic trucking business TNT Hoau which China state-owned private equity fund CITI PE agreed to buy in March for an undisclosed price. A TNT spokesman told the JOC the deal was expected to be completed in the second half of 2013, with part of the settlements planned for 2014.
“Hoau is strictly a domestic business with its own customers and network,” he added. “The sale doesn’t affect TNT Express’ international service to and from China, which relies on 36 branches and 3,000 employees.”
He insisted the deal would not impact TNT’s Asia Road Network, an international trucking business that links Southeast Asia and China, which the spokesman said would remain part of TNT’s international express portfolio.
TNT is now also attempting to offload its domestic operations in Brazil. “Contribution to our core European and intercontinental business has proven very limited,” the spokesman said. “The sale process is underway. We will report on progress in due time.”
However, it seems the firm’s profitable Australia domestic business is not under threat despite it seeming an unlikely fit with company’s Europe-centric new strategy. The spokesman said Australia remained a market in which TNT was “positioned for long term growth.”
Contact Mike King at email@example.com.