Hong Kong-based LF Logistics now part of Maersk
Maersk completed its US$3.6b acquisition of LF Logistics in late August, taking control of the Hong Kong-based contract logistics company, which will now be rebranded to Maersk.
Maersk will add 223 warehouses to the existing portfolio, bringing the total number of facilities to 549 globally, spread across a total of 9.5 million square meters.
LF Logistics, part of supply chain manager Li & Fung, employs 10,000 people, operates an extensive pan-Asia network and specializes in B2B and B2C distribution solutions within retail, wholesale, and e-commerce. It offers premium omnichannel fulfillment services, e-commerce, and inland transport in the Asia-Pacific region.
As part of the transaction to acquire LF Logistics, Maersk has entered a strategic partnership with Li & Fung to develop a comprehensive range of end-to-end global supply chain services with Li & Fung focusing on the upstream supply chain and Maersk focusing on the downstream supply chain.
“Historically, our focus has been on origin logistics or exports out of Asia, but now the region has transitioned into a large consumer market in its own right,” said Ditlev Blicher, Regional Managing Director of Asia Pacific at A.P. Moller – Maersk.
Blicher noted that the combined team will provide strong omnichannel fulfillment capabilities that will enable exports into Asia and connect with the Asian consumer directly.” The parent company of Li & Fung will retain and continue to build its carved-out global freight management or GFM business.