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A Chinese investor from Central China's Henan Province has sealed a deal to buy Parchim Airport in Germany at a cost of 1 billion yuan ($130 million).

It is said to be the first time a Chinese company has wholly owned an European airport, which is located in Schwerin, not far from Hamburg and Berlin.

Pang Yuliang, chairman of the board of LinkGlobal Logistics Co Ltd, beat 10 other global competitors, including FedEx, Hamburg Airport, and Emirates Airline, in an international tender.

Pang told Economic Daily News: "China's vast logistics market has attracted Germany which expects to boost its economy through cooperation with Chinese enterprises.

"The demand of Chinese enterprises for logistic services to Europe is also huge. If we have our own airport in Europe, transport costs will be reduced greatly."

According to the deal, LinkGlobal has 100 percent property rights to Parchim Airport and its facilities, as well as permanent ownership of land in an economic cooperation zone affiliated to the airport.

The purchase will help Pang further expand the logistics network of LinkGlobal, a Beijing -based company. It has a network covering more than 200 cities in China and about 90 countries worldwide.

However, there are doubts about Pang's ability to pay the agreed price, and he has remained silent about his company's assets.

But he told Economic Daily News that a Nigerian bank will vouch for his company, and no domestic banks are involved.

Pang is said to have business relations with Nigeria.

The governments of Henan Province and Zhengzhou - the provincial capital and Schwerin's sister city, and Zhengzhou Xinzheng International Airport have signed an agreement with Pang's company to set up a Zhengzhou-based aviation logistics company.

The company will operate a cargo transport business between China and Germany, and Pang's company will hold a majority stake.

(China Daily 05/26/2007 page2)

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