"This agreement opens a wealth of opportunity for UPS customers seeking to do business with China," said David Abney, president of UPS International. "UPS will have the flexibility it needs to expand operations and to invest in facilities, infrastructure, technology and employee development."
The agreement, signed on Dec 1, requires a payment of US$100 million by UPS for the transfer of operations in 23 cities across China. Operations in those 23 business centers extend service to an additional 200 cities, which account for more than 80 percent of China's gross domestic product. With an expanded network in place, UPS will offer customers enhanced services and access in and out of the world's fastest growing market.
Starting in January of 2005, UPS will take direct control of operations in five locations: Shanghai, Guangzhou, Shenzhen, Tianjin and Qingdao. By December 2005, UPS will assume control over its express operations in 18 additional locations, and have a total of 1,700 employees.