Kerry Logistics Network yesterday finalised a land purchase in Waigaoqiao Free Trade Zone which the company will use to build its second multi-purpose logistics centre in Shanghai.
Kerry Logistics, a subsidiary of the Kerry Group (parent company of the SCMP Group), was to begin construction of the US$6.7 million project 'within two months', executive director Vincent Wong said.
The facility will complement the company's freight handling centre at the Shanghai Caohejing Hi-tech Park, which is nearing capacity in its second year of operation.
'We tested the water for the past two years and the lot spaces for this type of enterprise were running out so we thought the timing was right,' Mr Wong said. 'Our other facility is chock-a-block so we know the demand is there.'
Kerry set up a company within the free trade zone, Kerry Waigaoqiao, which entitled it to wholly own the venture.
Mr Wong said he expected construction to start in October and take about eight months.