Metro hopes for 10% rise in procurement

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Last updated at: (Beijing Time) Monday, November 17, 2003

Metro hopes for 10% rise in procurement

As part of its expansion plans in China, Germany-based Metro AG hopes that its procurement business in the country will rise by double digits.

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As part of its expansion plans in China, Germany-based Metro AG hopes that its procurement business in the country will rise by double digits.

The retailing group will also strengthen its relationship with domestic suppliers.

"We hope that our procurement volume on China's mainland will enjoy a more than 10 percent growth next year," said Bernd Hanemann, chief executive officer of Metro Group Buying HK Ltd, which is in charge of the procurement business that sources products in China and supplies to Metro's overseas outlets.

The world's third-largest retailer now buys products worth 2 billion euros (US$2.32 billion) from China every year.

Metro is looking for more suppliers in the southern Guangdong Province, where the group used to buy most of its Chinese goods to fill its global sales network, Hanemann added.

"When choosing suppliers, we are looking for suppliers not only qualified for our Shanghai or other Chinese sales but also those for our global market in the future," said Jean-Luc Tuzes, president of Shanghai-based Metro Jinjiang Cash and Carry Co Ltd, Metro's joint venture in China, which was set up in 1995.

Earlier this month, Metro said it would open another 40 cash-and-carry outlets in China in five years by investing 600 million euros. Metro has opened 18 outlets in China through Metro Jinjiang so far.

Last year, China accounted for 1.2 percent of Metro's global sales. Asian sales are expected to hit 10 percent in five years, with China contributing 90 percent of that in the region.

Metro will hold its largest supplier conference in the world in Shanghai today.

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