Global Logistic plans massive mainland warehouse expansion
Firm plans massive warehouse expansion on mainland to cash in on stimulus programme
Global Logistic Properties would spend at least 8 billion yuan (HK$9.8 billion) a year building warehouse space on the mainland, chief executive Mei Ming Zhi said yesterday.
The firm wants to ride the wave of the government's drive to boost domestic consumption.
"We're building 2 million square metres this year, but the backlog of our customer demand is 4 million sq metres," Mei said.
The projected investment is more than the US$1 billion the company invested in the past two years. This year it is building warehouses in cities including Changsha, Chongqing, Chengdu, Shanghai, Suzhou, Beijing and Tianjin.
Mei said future growth would be more than the 2 million square metres being built this year. "China needs 2.4 billion square metres of warehouse space," he said.
The mainland had 550 million square metres of warehouse space, of which 80 per cent needed upgrading, Mei said.