Honeywell has acquired 25 per cent ownership interest in Flux Information Technology, a leading provider of warehouse management and related supply chain software in China. It has also decided to form a new joint venture company with Flux 's founder to serve customers outside China. Honeywell will hold a 75 per cent stake in the new joint venture.
The joint venture will initially focus on opportunities in the Asia Pacific region.Honeywell has acquired 25 per cent ownership interest in Flux Information Technology, a leading provider of warehouse management and related supply chain software in China. It has also decided to form a new joint venture company with Flux 's founder to serve customers outside China. Honeywell will hold a 75 per cent stake in the new joint venture.#
The partnership enhances Honeywell's Connected Supply Chain offerings and advances its software-industrial strategy.
The investment in Flux is expected to close by the end of the fourth quarter pending Chinese regulatory approvals.
Flux develops and implements warehouse management systems and other software for customers in multiple industries, and is a leading player in China's booming e-commerce, apparel, pharmaceutical, retail, third-party logistics, cold chain and manufacturing sectors. Flux 's supply chain execution solutions include its Warehouse Management System, Transportation Management System, Order Management System and Data Exchange Platform.
Flux 's offerings complement those of Honeywell Safety and Productivity Solutions, which develops hardware and software that improve productivity, enhance worker safety, and increase accuracy and throughput of supply chains.
"We are pleased to be partnering with a dynamic, emerging leader with a proven track record in a fast-growing market," said John Waldron, president and CEO, Honeywell Safety and Productivity Solutions. " Flux 's strong software capabilities fit well into Honeywell's Connected Supply Chain strategy, complementing the warehouse expertise of our Honeywell Intelligrated business. Flux 's warehouse, transportation management and order management offerings complement Honeywell's data capture technology, worker productivity and warehouse automation solutions, and enable us to maximize customer satisfaction in the digital age."
Over the past decade, Flux 's business has grown significantly. Its software now manages more than 12 million square metres of warehouse space in China alone. During China's November 11 "Singles' Day" online shopping festival – the largest e-commerce day in the world -- Flux 's solutions helped process up to 650,000 orders per warehouse per day. E-commerce sales currently total more than $1.3 trillion in the Asia Pacific region, according to expert estimates, and sales are expected to more than double to $3 trillion by 2021.
"We are pleased to team up with Honeywell to further expand in China and to play an active role in the global warehousing and logistics industry by offering our leading Warehouse Management System solutions," Shi Zunli, founder and CEO of Flux. "Honeywell has outstanding industry reach and strong global presence, which will enable us to fulfill our vision of globalisation. With this strategic partnership, we will connect, collaborate and create more value for our customers."
Li Ning, president of Honeywell SPS Greater China and India, said, "This partnership will allow Honeywell to accelerate the pace of executing our connected strategy in China and the Asia-Pacificregion and create a win-win situation for both companies. This agreement strengthens our position as a software-industrial company and supports our efforts in developing and acquiring capabilities in China that are relevant for a global customer base." (SV)
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