Hong Kong, China: Swire Group is to spend $450 million on eight cold storage siktes in China.
“We are building the best in class, comparable to any in the world,” said Clement Lam, director and manager, Swire Pacific Cold Storage. China, in a telephone interview with the American Journal of Transportation.
Swire, best known as the owner of Cathay Pacific, is one of the world’s leading cold storage operators. It owns United States Cold Storage, with 36 US sites with nearly one million pallet positions, as well as operations in Australia, Sri Lanka, Vietnam and Hong Kong.
In China, Swire began with a cold storage joint venture in Guangzhou in 2008. It mounted its own building campaign two years later, also in Guangzhou. Swire has since opened four more facilities: Nanjing, Ningbo, Langfang, in Hebei province, and Shanghai. Two more are being built in Chengdu and Xiamen, with scheduled openings during the first quarter of 2017. An eighth facility is set for Wuhan, where Swire is now negotiating with the government for land.
The building program is not only costly, but drags down group profitability. In 2015, Swire Pacific Cold Storage lost HK$102 million ($13.15 million), which the company attributed to both operating losses in all but the Guangzhou facility, and development costs.
Posted on July 14, 2016
by Edwin Kalischnig