Honeywell Invests In Chinese Supply Chain Software Firm
Honeywell has signed an agreement to acquire a 25% ownership interest in FLUX Information Technology, a provider of warehouse management and supply chain software in China.
Honeywell will also form a new joint venture company with FLUX’s founder to serve customers outside China. Honeywell will hold a 75% stake in the new joint venture.
The investment in FLUX is expected to close by year-end if approved by Chinese regulators.
FLUX develops and implements warehouse management systems and other software for customers in multiple industries, and is a leading player in China’s e-commerce, apparel, pharmaceutical, retail, third-party logistics, cold chain and manufacturing sectors.
FLUX’s supply chain solutions include its Warehouse Management System, Transportation Management System, Order Management System and Data Exchange Platform.
“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 software manages more than 12 million square meters of warehouse space in China.
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.
Li Ning, president of Honeywell SPS Greater China & India, said, “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.”
FLUX Information Technology provides supply chain execution solutions www.flux.com.cn.
Honeywell is a Fortune 100 software-industrial company that delivers industry specific solutions and control technologies for buildings, homes, and industry. www.honeywell.com