Hong Kong-listed Kerry Logistics Network and Hengan International Group have set up a joint venture to create ‘synergy’ in the business-to-business (‘B2B’) bulk distribution and wholesale market of medical, healthcare and hygiene products.
Hengan Group is a known producer of hygiene consumables like diapers and band-aids in China, and the company is looking to expand its business into other Asian countries and territories moving forward.
Kerry Logistics says the joint venture company was established to explore closer collaboration and provide innovative solutions to customers in both the public and private medical and healthcare sectors.
It will also have full support of the Banitore brand of diapers, band-aids and face mask products, which is owned by Hengan Group, in the Hong Kong market.
“This partnership marks the coming together of the best in two industries, leveraging Hengan Group’s leading position in the production of hygiene consumables in the China market and KLN’s established network in China and the rest of Asia, broad customer base as well as trusted track record in domestic logistics in Hong Kong,” noted Tommy Hui, executive director of Hengan Group, said.
“Our ongoing collaboration with KLN has been fruitful and we have high hopes for this new venture.”
In 2020, the two companies worked together to meet the high demand for pandemic-related medical, healthcare and hygiene products, including masks, gloves and toiletries.
According to a recent report, the global market for N95 masks, used to prevent further spread of Covid-19 infections, was estimated at US$3.7 billion in 2020 and is projected to reach US$11.8 billion by 2026, growing at a CAGR of 18.9 percent