LONDON (Alliance News) - China Chaintek United Co Ltd said Tuesday it has agreed to lease a regional distribution centre in Changsha, the capital of the Hunan province in south-central China.
The Chinese consumer goods manufacturer said the new distribution centre will further progress its aim of become a "national logistics company". A number of shoe and apparel companies are considering relocating their manufacturing operations to cheaper regions inland, Chaintek said, and as a result it is making sure it can provide for its customers in these more centrally located regions.
The 13,500 square metre distribution centre will initially be used to service Guangzhou ShengYu Footwear Ltd, which has signed a two-year warehouse service contract with Chaintek.
Shares in China Chaintek are trading up 4.6% at 34.00 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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