First Korean Internet site for maintenance, repair and operating (MRO) supplies
CHICAGO, May 18, 2000-- Grainger International, a subsidiary of W.W. Grainger, Inc., the leading North American provider of maintenance, repair, and operating (MRO) supplies and information, and SK Global, a member company of the SK Group, a leading petrochemical and telecommunications company in Korea, today announced that they have entered into a joint venture agreement. The joint venture will establish the first Web-based B2B procurement solution for indirect materials in the Korean marketplace. The site is expected to be live by the end of the year.
Under the terms of the agreement, Grainger will receive a 49 percent ownership in the joint venture company in exchange for an equity contribution. SK Global, which will manage the operations of the business with technical support from Grainger, will have a 51 percent ownership.
“We are very pleased to partner in one of the first e-commerce initiatives in Korea,” said John A. Schweig, Grainger’s senior vice president in charge of international operations. “The introduction of an Internet-based solution to the Korean MRO industry will lead to greater efficiency and savings for a highly complex and fragmented supply chain. We look forward to working with SK Global’s management team to provide customers with the best products and services.”
“Our commitment to this new joint venture reflects our strategy to pursue new e-commerce opportunities worldwide maximizing our Internet leadership and MRO expertise,” added Donald E. Bielinski, Grainger group president.
The venture will provide Korean customers with a selection of MRO products with pre-purchase pricing information, technical, and customer service. Customers will be able to purchase the majority of their indirect materials from a single source that will eventually offer more than 100,000 products online. Additional suppliers will be joining the network bringing expanded product and service offerings to customers and access to technology that will improve the supply chain process.
“We expect great synergy in combining our marketing knowledge with Grainger’s experience in the MRO industry,” said Joo Chul Park, SK Global senior vice president in charge of global business. “This new B-to-B venture will transfer our traditional labor intensive MRO procurement process to a quicker, more efficient e-commerce solution.”
SK Global, headquartered in Seoul, Korea, is a worldwide diversified trading company and a member company of the SK Group. SK Global exports more than 2,000 products to 130 countries and imports raw materials and equipment for petrochemical processing and production. 1999 sales for SK Global exceeded $6.6 billion.
W.W. Grainger, Inc. (GWW), with 1999 sales of $4.5 billion, is the leading North American provider of maintenance, repair, and operating (MRO) supplies and related information to businesses and institutions. Grainger shares are traded on the New York and Chicago stock exchanges. For more information, visit Grainger online at www.grainger.com.