Nichirei in joint refrigerated logistics venture in Thailand
Japan's Nichirei Corp. has agreed with SCG Logistics Management Co. of Thailand to set up a joint ve…Japan's Nichirei Corp. has agreed with SCG Logistics Management Co. of Thailand to set up a joint venture near Bangkok in June to provide temperature-controlled logistics services in Thailand.
The venture, SCG Nichirei Logistics Co., will be owned 51% by SCGL and 49% by Nichirei's wholly owned arm Nichirei Logistics Group Inc. It will start services in September and establish a refrigerated warehouse near a port in the Thai province of Sumutprakarn by July 2014.
Nichirei Logistics has a refrigerated storage capacity of approximately 1.8 million tons. As of March 2013 it held the largest market share in Japan and the sixth largest market share in the world. Together with its operations in Europe, which began in 1988, and those in China, which began in 2004, sales from its overseas operations have continually expanded to comprise more than 10% of Nichirei Logistics' overall sales at present.
Following deliberations on the development of new operations overseas to further expand its overseas operations, Nichirei Logistics decided to develop new operations in Thailand, as it already possesses local business experience in Thailand through the operations of Nichirei Foods Inc., its processed foods business, and the temperature-controlled logistics market is expected to expand in the future given expectations that the Thai economy is likely to continue to grow.
SCGL is a group company of Siam Cement Public Co., in which The Crown Property Bureau Group holds a stake of approximately 30%. SCGL manages a wide range of ambient logistic operations.
