Acquires KEC Interest In Express JV; Signs Cooperation Agreement
18 June 2008 - Seoul, Korea. UPS today announced an agreement with The Korea Express Co., Ltd. (KEC) to acquire KEC's interest in the UPS-KEC express joint venture company, which will become a UPS wholly-owned subsidiary. This is an important move for UPS to grow its business in Korea and better serve its customers in a key market.
"UPS and KEC have had a successful partnership in Korea for more than ten years, and UPS has arrived at a time in our operations where we need greater flexibility and commitment to this important market" said Derek Woodward, President of UPS Asia Pacific Region. "With the establishment of wholly-owned operations in Korea, UPS will have the flexibility it needs to invest in facilities, infrastructure, technology, employee development and to expand operations. And our customers will have the confidence of knowing we can stay ahead of demand in a market that is rapidly growing in importance."
The two companies also signed a co-operation agreement for continued collaboration, which recognizes UPS' global network and infrastructure and KEC's local network and customs brokerage operations.
"UPS is grateful to KEC for their support and partnership," continued Woodward. "We look forward to this new phase of our relationship with KEC, and to UPS growth and commitment to this market that will enable UPS to operate more efficiently to meet changing customer demands."
UPS expects to enhance its levels of reliability and to further build its brand presence in Korea. As part of its strategy to provide total integrated logistics solutions, UPS will begin integrating its supply chain solutions division to the newly-formed package express entity to offer a single UPS branded portfolio.
Earlier this year UPS rolled out a series of new services to better serve Korean customers including a simplified suite of three services for shipping international air freight involving a substantially expanded express freight option with guaranteed door-to-door service. UPS is in a unique position as the only carrier rooted in both integrator and freight-forwarding business models, and has blended its networks to offer a single air freight portfolio.
UPS began operating in Korea in 1988. The company operates 31 weekly flights to and from Incheon Airport using B747, B757, B767 and MD11s connecting Seoul to Clark, Shanghai, Qingdao, Taipei, Anchorage and Cologne.
UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at www.ups.com.
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