SGL to expand operations in China, investing in warehousing and electric trucks

Scan Global Logistics (SGL), a Denmark-based logistics service provider, will open new service branches in several cities across China's eastern and western regions, invest in warehousing operations, and expand its fleet of electric trucks over the next five years, according to its senior executives.

The company plans to open new offices and service facilities in cities including Hangzhou, Nanjing and Wuxi, in East China's Zhejiang and Jiangsu provinces, as well as Chengdu in Southwest China's Sichuan province.

"Historically, much of our business in Asia has been managed from overseas, particularly in Europe or the United States. Today, however, we are witnessing robust growth in China, with expectations of double-digit expansion in this market this year," said Allan Melgaard, the group's CEO.

With the rapid emergence of numerous electric vehicle brands, the market landscape has become increasingly complex. SGL's ambitions in China have expanded significantly over the past three years and will hire more talent across the country, said Melgaard.

With a global workforce of over 4,500 employees in more than 55 countries and regions, SGL currently operates 15 branches in China. In early April, the company rolled out its first batch of electric trucks in Shanghai and Guangzhou, Guangdong province, and established an intelligent road freight operations center in Shanghai to enhance its logistics capabilities.

Noting that SGL will deploy more electric trucks in China in the years ahead, Rickard Ingvarsson, the group's CEO for Asia, said that as a pivotal hub in the restructuring of global supply chains, China's vast market and dynamic innovation ecosystem will continue to attract multinational corporations.

"This initiative aligns with China's national strategy outlined for modern logistics development, which emphasizes building a green and smart logistics system," said Ingvarsson, adding that while many clients in China and abroad are already embracing low-emission solutions such as sustainable aviation fuel and biofuels, SGL's focus is on delivering practical, sustainable logistics options.

After completing several acquisitions across the globe in recent years, Mads Drejer, SGL's chief operating officer, said each of these moves has positively contributed to the company's business in China.

"Whether in Italy, Spain, the United Kingdom or North America, all these markets maintain close commercial ties with China," Drejer said. "This dynamic is set to continue, and we anticipate strong growth in China in the years to come."

The Danish company currently offers air, ocean and road freight services, along with customs clearance, fulfillment, distribution, storage, and warehousing solutions for its customers in China. It serves a wide range of industries, including the photovoltaic energy, automotive, fashion and retail, telecommunications, healthcare and pharmaceutical sectors.