HOUSTON, May 8 /PRNewswire-FirstCall/ -- EGL Eagle Global Logistics , a leading provider of personalized supply chain solutions, has recently been awarded a three-year contract by Huntsman, a global manufacturer and marketer of differentiated chemicals. As part of the new warehousing and distribution contract to launch today, EGL will operate and manage a facility in Qianhaiwan, Shekou District, Shenzhen, where Huntsman products and materials will be distributed to more than 10 satellite hubs across the Asia Pacific region. This warehouse operation is also part of EGL's overall expansion plans specific to Southern China.
An official contract signing took place at the Shenzhen distribution center location on April 24, 2007. Representatives from EGL and Huntsman, including Marc Deshamps, Huntsman Vice President, Global Supply Chain; Vittorio Favati, EGL President Asia Pacific; and Rick Lee, EGL Vice President of Logistics Asia Pacific were in attendance for the ceremony. Festivities included speeches given from representatives of each company, the China Merchants Group and China Government officials, as well as a ribbon cutting and traditional Chinese Lion dance show.
During Phase I of implementation, EGL will dedicate a 5,500 m2 warehouse for non-dangerous goods, with a 5,000-pallet storage capacity. Initial forecasts predict an estimated volume of 500 pallets of non-dangerous materials during the first phase, with an expectation of substantial growth to more than 10,000 pallets during later phases. In addition to the bonded warehouse located in Shenzhen, a supplementary warehouse in Dongguan will also play a significant role in the storage and processing of dangerous materials.
"By providing Huntsman with a superior logistics solution to address the company's unique business needs, EGL was able to create a simplified process, which will provide significant cost savings and shorten overall cycle times," said Favati. "At EGL, we believe in providing our customers with seamless customer experience. In doing so, our valued customers, such as Huntsman, benefit from an uncomplicated business process from the beginning of every cycle through the delivery of every product."
Influential factors in Huntsman's decision to award the contract to EGL include the company's ability to streamline operational processes, with a longer term strategy of removing excess inventory at each satellite hub location, ultimately leading to increased supply chain visibility, improved product velocity and decreased inventory carrying costs.
About EGL, Inc.
Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics. EGL is a leading global transportation, supply chain management and information services company dedicated to providing superior flexibility and fewer shipping restrictions on a price competitive basis. With 2006 revenues exceeding $3.2 billion, EGL's services include air and ocean freight forwarding, customs brokerage, local pickup and delivery service, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services. The Company's shares are traded on the NASDAQ National Market under the symbol "EAGL".
