DGAP-News: VTG Aktiengesellschaft: VTG concludes joint venture with Cosco Logistics and invests in Chinese
VTG Aktiengesellschaft / Joint Venture
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VTG concludes joint venture with Cosco Logistics and invests in Chinese tank container transport company
Hamburg, 25 June 2008 – VTG Aktiengesellschaft (SCN: VTG999 / ISIN: DE000VTG9999), Hamburg, will become joint venture partner to Cosco Logistics Co. Ltd., Beijing, via its subsidiary VOTG. The VTG Group will purchase the 50 percent share in the Chinese logistics service provider, Cosco-Vopak Logistics Co., located in Shanghai, held until now by Vopak, and will thus continue to expand its globally positioned Tank Container Logistics Division. A contract has been signed with the seller, Vopak North China B.V. The parties agreed not to disclose the purchase price.
'Through the joint venture with Cosco we will substantially develop the Chinese business of our VOTG subsidiary, which operates in tank container logistics, and directly expand our market position in the fastest expanding economic area worldwide', said Dr. Heiko Fischer, Chairman of the executive board of VTG Aktiengesellschaft. VOTG Tanktainer GmbH, a 100 percent subsidiary of the VTG Group, has already had a presence for several years in the expanding Chinese market for tank containers.
The future joint venture embodied within the company Cosco-VOTG Logistics Co. is specialized in logistics services for the transport of chemicals for the chemical and petrochemical industry as well as in the transport of foodgrade within China. Customers include European and American chemical companies which require logistical support for their exports and imports and also for their distribution within China which have been establishing their own production facilities locally. In addition to its activity as an agent, the joint venture is also building up the door-to-door transport business with leased containers. The chemical industry is the third largest industrial sector in China.
In addition to its head office in Shanghai, the future Cosco-VOTG Logistics has four additional branches at the most important transport hubs along the Chinese coast. With 30 employees, the company generated revenues of US Dollar 14.0 million in the financial year 2007. As an agent for imports and exports to and from China, the company is already a long-standing partner of VOTG in the People’s Republic. The new joint venture is thus the result of solidly established business relationships between the companies involved.
'We expect that the strong economic upturn in China – especially within the chemical sector – will continue to accelerate the demand for logistics services. The joint venture with the Cosco shipping and logistics group offers diverse possibilities for the continued expansion of our logistics activities in the Asian region', explains Dr. Fischer.
VTG Aktiengesellschaft is one of Europe’s leading rail logistics and wagon hire companies. With about 48,400 rail freight cars, VTG has Europe’s largest private wagon fleet. In addition to the hiring of rail freight cars, the Group offers global tank container transport and comprehensive mulit-modal logistics services mainly around rail transport.
With the combination of its three interrelated divisions Wagon Hire, Rail Logistics and Tank Container Logistics VTG offers its clients a high-performance platform for international transport of their freight. The Group has many years of experience and specific know-how in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost all industrial sectors such as, for example, chemicals, mineral oil, the automobile or paper industries.
In the financial year 2007 VTG generated operating revenues of EUR 541.4 million and an operating result (EBITDA) of EUR 137.0 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 31 March 2008 VTG employed 831 employees worldwide in consolidated companies. Since June 2007 VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange (SCN: VTG999).
About VOTG Tanktainer GmbH:
Within the Tank Container Logistics Division the VTG Group offers worldwide inter-modal transport and logistics services through its subsidiary VOTG Tanktainer GmbH. In Total, a fleet of of approx. 8,000 tank containers is available. Major goods transported are liquid and temperature-controlled products from the chemical, mineral oil and compressed gas sectors.
VOTG has 97 employees in consolidated and 46 in non-consolidated companies and is represented worldwide by own locations (including USA and Singapore) as well as by representations.
Telephone: +49 (0) 211 430 79-70
Fax: +49 (0) 211 430 79-79
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
Additional information: www.vtg.com
25.06.2008 Financial News transmitted by DGAP
Issuer: VTG Aktiengesellschaft
Phone: 040 2354 0
Fax: 040 2354 1199
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
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