Aviation services firm John Menzies is set to expand into the Chinese air cargo market.
The business is investing £3.4m (US$4.8m) to acquire a minor equity stake, by way of a joint venture, in Chinese firm Guangzhou JFreight Aviation Logistics Supply Chain Co. Ltd (JFreight).
The joint venture will see Menzies managing and operating a new cargo terminal at Guangzhou Baiyun International Airport in China on behalf of the shareholders of JFreight.
At the terminal, which can process up to 120,000 tonnes of cargo annually, Menzies will focus on handling goods related to the fast-growing Chinese e-commerce market.
Philipp Joeinig, chairman and chief executive at John Menzies, commented: “I am delighted to be able to announce this expansion in the Chinese cargo market. We are very pleased to have found a great partner in JFreight and I look forward to developing our relationship with them as we move forward. “This investment demonstrates our commitment to delivering on our strategy and I am very excited about the opportunity it brings.”
Zheng Xi Ming, chairman of JFreight, added: “I am very pleased to welcome Menzies Aviation with their established expertise in cargo handling and the wider aviation services market into our venture in Guangzhou. I very much look forward to working closely together and delivering successful operations.”
JFreight is experienced in artificial intelligence and robotics and has used its technical skills to create its smart terminal at the hub.
