Aju Business Daily

SEOUL -- Hyundai Glovis, a logistics arm of South Korea's Hyundai auto group, set up a joint venture with Stena Rederi AB, a Swedish shipping company, to open a transport service that would carry Hyundai cars and other vehicles in Europe. The joint venture underlines Glovis' strategy to tap into the global shipping industry.

Glovis said in a statement Wednesday that the joint venture named Stena Glovis, equally shared by the two companies, would be based in Hamburg, Germany. The initial investment is 6.5 billion won ($5.7 million) each from the two companies.

"The establishment of this joint venture will further enhance Hyundai Glovis' global shipping competitiveness," Glovis CEO Kim Jung-hoon said, adding that through the joint venture, Glovis and its Swedish partner would secure a place in the European shipping market and gradually expand its business scope.

The joint venture will ship some of Stena Rederi's finished vehicles and the consignment of Glovis in Europe. It would also seek to win contracts from heavy equipment makers.