Grand Power Signs Joint Venture With "BJAS" to Establish Dangerous Cargo and Hazardous Materials Business
CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - Nov. 24, 2009) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) (Grand Power or the Company), a leading China-based international logistics provider, is pleased to announce that it has formed a joint venture company with Beijing Jinfeng Air Service Co. Ltd. (BJAS) pursuant to the operating agreement previously announced on September 29, 2008. The Joint Venture company is named Beijing Jinfeng International Logistics Ltd. (BJIL or the Joint Venture).
BJAS is a subsidiary of the China National Aviation Holdings Company (CNAH), which owns Air China, the largest and most well established airline in China. CNAH is listed on the Hong Kong Stock Exchange.
The Joint Venture has secured the necessary government licenses to transport dangerous cargo and hazardous materials. Dangerous cargo and hazardous materials shipping is a high margin business with limited competition, due to stringent licensing criteria and expertise requirements. The services to be provided include ground transportation, loading, custom clearance and warehousing.
The Joint Venture plans to commence operations in January 2010 in Northern China, based in Beijing and Tianjin, which are the two major cities in the region. The Company expects to expand the Joint Venture to other major Northern China cities such as Dalian and Qingdao.
Grand Power owns 45.9% of the Joint Venture, with each partner contributing its proportionate share of resources. The initial investment is expected to amount to less than $1 million each. The Company expects that the working capital requirements of the Joint Venture to be relatively low, due to the expected short payment cycles for dangerous cargo and hazardous materials.
BJAS is a significant player in Northern China, and the Joint Venture will fast track Grand Power's growth initiative in the dangerous cargo and hazardous materials business. This sector is in line with our strategy of focusing resources in high margin sectors. In addition, the capital expenditures and working capital requirements are lower than regular shipping, said Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group. By launching ourselves in Beijing and Tianjin, we are penetrating a market with a population of nearly 30 million people, and establishing a platform to expand into other cities in the region.
About Grand Power Logistics Group Inc.
Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.
Forward-looking statements: Statements included in this press release that are not historical facts may be considered forward looking statements. All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
BJAS is a subsidiary of the China National Aviation Holdings Company (CNAH), which owns Air China, the largest and most well established airline in China. CNAH is listed on the Hong Kong Stock Exchange.
The Joint Venture has secured the necessary government licenses to transport dangerous cargo and hazardous materials. Dangerous cargo and hazardous materials shipping is a high margin business with limited competition, due to stringent licensing criteria and expertise requirements. The services to be provided include ground transportation, loading, custom clearance and warehousing.
The Joint Venture plans to commence operations in January 2010 in Northern China, based in Beijing and Tianjin, which are the two major cities in the region. The Company expects to expand the Joint Venture to other major Northern China cities such as Dalian and Qingdao.
Grand Power owns 45.9% of the Joint Venture, with each partner contributing its proportionate share of resources. The initial investment is expected to amount to less than $1 million each. The Company expects that the working capital requirements of the Joint Venture to be relatively low, due to the expected short payment cycles for dangerous cargo and hazardous materials.
BJAS is a significant player in Northern China, and the Joint Venture will fast track Grand Power's growth initiative in the dangerous cargo and hazardous materials business. This sector is in line with our strategy of focusing resources in high margin sectors. In addition, the capital expenditures and working capital requirements are lower than regular shipping, said Mr. Ricky Chiu, President and CEO of Grand Power Logistics Group. By launching ourselves in Beijing and Tianjin, we are penetrating a market with a population of nearly 30 million people, and establishing a platform to expand into other cities in the region.
About Grand Power Logistics Group Inc.
Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.
Forward-looking statements: Statements included in this press release that are not historical facts may be considered forward looking statements. All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.