| 09.15.05
- OVERLAND PARK, KS -- Yellow Roadway Corporation
("YRC,") (Nasdaq: YELL) and Shanghai Jin Jiang
International Industrial Investment Co., Ltd. ("Jin Jiang
Investment") finalized the formation of a China-based
transportation joint venture on September 1, 2005. Under the
terms of the joint venture, both YRC and Jin Jiang Investment
own 50% of JHJ International Transportation Co., Ltd. ("JHJ"),
the freight forwarding subsidiary of Jin Jiang Investment.
Based in Shanghai, JHJ is
the second largest air freight forwarder in China. JHJ also
offers ocean freight forwarding and logistics services through a
strong domestic network of 25 locations, including 5 customs
warehouses adjacent to the Shanghai Pudong International
Airport. JHJ, who employs over 1,100 people, reported 2004
revenue of $330 million.
YRC invested $45 million
to acquire its 50% equity interest in JHJ. Both YRC and Jin
Jiang will be equally represented on the board of directors of
the joint venture. YRC will report its equity interest in JHJ
earnings in the non-operating section of its Consolidated
Statement of Operations, and expects the transaction to be
slightly accretive to its consolidated 2005 earnings.
YRC also announced that
its Meridian IQ subsidiary ("MIQ") and Jin Jiang
Investment signed an agreement for a new logistics joint
venture. Under the terms of the agreement, MIQ initially will
own 75% and Jin Jiang will own 25% of the newly formed Meridian
IQ Jin Jiang Logistics Co., Ltd. MIQ has agreed to initially
invest $7.5 million over a three-year period. YRC expects to
consolidate the results of Meridian IQ Jin Jiang Logistics Co.,
Ltd. in its financial statements.
The logistics joint
venture is subject to governmental approval processes in China
and is expected to close in early 2006.
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