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Foxconn forms new LNG joint venture with affiliate IDG Energy
CKN
2018/12/26 09:46:36
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China's News, China's Financial News, Joint Venture

Dec 26, 2018 (China Knowledge) - Foxconn Technology and its affiliate IDG Energy Investment have just registered a joint venture (JV) to provide logistics services to the liquefied natural gas (LNG) sector.

The new JV Jusda Energy Technology Shanghai is 51% owned by Foxconn’s unit Jusda Supply Chain Management International which invested RMB 102 million and is 39% owned by IDG Energy. The remaining 10% stake has been taken up by the new JV’s management.

All three parties hold a pre-emptive right to further invest into the venture with the total final investment not exceeding RMB 500 million.

It will help customers obtain LNG resources in North American and Asia Pacific via IDG’s network, while, Jusda, which is Foxconn’s logistics chain management network will take on the role of distributing these resources through its transport network.

Currently, LNG logistics in China mainly centers around specialized road vehicles, ships and receiving stations which are dominated by the China’s major state-owned oil companies. The new JV plans to work around this by using shipping terminals and transport containers. Through this, the gas can be shipped via land, rail or waterways at a reduced cost.

This JV is the latest in a series of moves by Foxconn to enter China’s energy market. The company invested RMB 25 billion into a new-energy vehicle battery factory last year and has been investing into solar power plants. Foxconn is also the largest shareholder of IDG Energy after acquiring a 24.4% stake for USD 190 million.

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