CityMail forming company with ASG for parcel distribution to private persons
CityMail forming company with ASG for parcel distribution to private persons CityMail and ASG are forming a joint company for home delivery of parcels. The company, to be named ASG Direct AB, is 65% owned by ASG and 35% by CityMail. Initially, operations will focus on Sweden and will be started during spring 1999. Today, there is no smoothly operating transport system for deliveries to private persons of goods ordered on the Internet or through mail order. Accordingly, ASG and CityMail are now creating a new distribution concept to meet demand in this growth area. The idea is based on the consumer being offered home delivery during the day, in the evening and on weekends. 'We are convinced that the business potential in the growing e-commerce on the Internet is substantial. The demand for increased service through rapid and reliable deliveries in a convenient manner for the consumer will be met through our new service. Combined, ASG and CityMail possess unique knowledge and expertise to offer a cost-efficient system for companies selling over the Internet', says Lars Sundman, president of ASG Specialist Companies AB and responsible for the new venture within ASG. 'There is no doubt that e-commerce on the Internet will result in continued growth within the transport industry. The traditional mail order industry has already shown a great interest for the service ASG Direct', says Bror Anders Månsson, president of CityMail Sweden AB. E-commerce on the Internet has the potential to grow rapidly in the years immediately ahead. Studies show that 46 % of the Swedish people have access to the Internet. More than 1.3 million are expected to make purchases over the Internet during 1999. The value of total Internet commerce in Sweden is estimated to amount to more than SEK 500 million during 1998 and is projected to rise to SEK 4 billion in 2001. CityMail was the first company in the world to establish distribution of letters on a larger scale different from the traditional national monopolies. Annual sales amount to approximately SEK 325 million, with distribution in Storstockholm, Gothenburg, Malmoe and the island of Gotland. ASG is a leading Nordic company for transport and logistics services with annual sales of approximately SEK 13 billion. ASG has 5 700 employees in the following business areas: Logistics, Road Transport, Air & Sea and Specialist Companies. CityMail Sweden AB Bror Anders Månsson For further information, please contact: Bror Anders Månsson, president of CityMail, Tel. +46 8-709 43 00/708-80 25 28 Håkan Ohlsson, vice president of CityMail, Tel +46 8 -709 43 00 / 707 52 42 01 Lars Sundman, president of ASG Specialist Companies, Tel. +46 8-402 58 32/70- 593 60 68 Jörgen Ekberg, president and CEO of ASG, Tel. +46 8-402 58 88/70-591 31 38 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/27/19981127BIT00060/bit0001.doc http://www.bit.se/bitonline/1998/11/27/19981127BIT00060/bit0002.pdf