HONG Kong-based Kerry Logistics has started construction of a new purpose-built 33,700-square-metre automotive parts logistics facility in Kunshan for Daimler, the first built-to-suit regional parts distribution centre within China.

The new facility, Kerry Kunshan Logistics Centre, is built for Northeast Asia Parts Trading and Services (DPTS), a fully-owned subsidiary of Daimler in China to start operations in 2014. It will provide the client with a hub for regional automotive spare parts distribution throughout China.

 "The client has demonstrated trust in Kerry Logistics by partnering with us on this project and this also lays the foundation for long-term strategic co-operation between our two companies," said William Ma, managing director of Kerry Logistics Network.

 China's automotive market is expected to exceed CNY320 billion (US$48.15 billion) in 2012 and investment by foreign auto manufacturers in local production, assembly and spare parts is growing rapidly in order to meet local demand.

 Kerry Logistics is also looking to expand its presence in the industrial property investment sector, added the company statement.

(Source:shipping online)