First Korean Internet Site for Maintenance, Repair and Operating (MRO)
Supplies
CHICAGO, May 18 /PRNewswire/ -- Grainger International, a subsidiary of
W.W. Grainger, Inc. (NYSE: GWW), 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 http://www.grainger.com .
SOURCE W.W. Grainger, Inc.
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Related links:
http://www.Grainger.com
Company News On-Call:
http://www.prnewswire.com/comp/953850.html or fax,
800-758-5804, ext. 953850
CONTACT:
Janis K. Tratnik of Grainger, 847-535-4339
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