June 23, 2021
TOKYO-MOL Logistics Co., Ltd. (MLG; President: Shuhei Togo) today announced that it has joined forces with Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto); Headquarters: Minato-ku, Tokyo), and Nippon Concept Corporation (Nichicon; President: Takayoshi Matsumoto; Headquarters: Chiyoda-ku, Tokyo) to establish a new company intended to serve as a core of their measures to expand and enhance their operation tie-ups globally, with a start in Asian region.
Nichicon is an international logistics company specializing in the transport of various liquid cargoes from dangerous goods such as chemical products to foods. It offers distinctive, “door-to-door international multimodal transport of liquid cargoes and gases” using tank continers. In 2018, MOL and Nichicon signed a business partnership agreement (Note 1), under which MOL acquired 15% of Nichicon’s issued shares. The deal also calls for steps to advance operational tie-ups, such as sharing overseas service and business networks and mutual use of services.
MLG, the core of MOL Group logistics, has already started export arrangement and customs clearance services for Nichicon’s ocean tank containers in Japan, and taken over overseas agency business in Mexico, Myammar, and Vietnam.
The new three-way joint company will promote expansion of operating tie-ups into new areas and further accelerate combined efforts to meet customers’ diversifying logistics needs in transport of chemical products and other liquid cargoes. Specifically, the new company will assume responsibility for Nichicon agency services, starting in Thailand and subsequently expanding throughout Asia, including China, India, the Philippines, and Indonesia, where demand for chemical products is increasing rapidly.
Bringing together MLG’s knowledge and networking capabilities accumuated over the years in the international air and ocean forwarding and logistics businesses with Nichicon’s knowledge and track record in liquid cargo transport using tank containers, the new company will offer comprehensive logistics solutions to customers of both MLG and Nichicon.
MLG developed a trucking business and dangerous goods warehouse in Thailand, and in Vietnam is upgrading its business based on a warehouse (for both general cargoes and dangerous goods) that MOL opened through a local investment joint stock company, MVG Dinh Vu Co., Ltd. It will develop the chemical product transport business as one of the pillars of its business base, mainly in Southeast Asia. In the future, MLG will expand its operational tie-ups to North America and Europe, and offer transport of chemical products and other liquid cargoes using safe, high-quality tank containers, unified with MOL and Nichicon to provide a comprehensive service menu via overseas subsidiaries.
MLG recognizes that transport of liquid cargoes including fuel alternatives to petroleum and coal will grow in step with efforts to create a low-carbon and decarbonized society, and strives to contribute to society by offering sustainable, wide-ranging services through an environment friendly business model using Nichicon’s tank containers.
(Note 1) MOL and Nichicon signed a deal for a capital and business alliance in 2018, and MOL acquired a 15% stake in Nichicon.
Outline of Joint Company
|Name||MOL Logistics (Tank Containers)|
|Business||Export and import agency business in ocean tank container service (operations, cargo collection)
Subletting the above export and import agency business to MLG overseas subsidiary from Nippon Concept Singapore Pte. Ltd. (a wholly owned subsidiary of Nichicon and its Asian regional headquarters overseas subsidiary)
|Registered address||In MOL Logistics Co., Ltd. (4-3 Kanda Surugadai, Chiyoda-ku, Tokyo)|
|Investment ratio||MLG: 33%
|Established||June, 2021 (scheduled)|
|Directors||President: Shuhei Togo (current MLG President)
Director: Osamu Sakurada (current MOL Executive Officer)
Director: Takayoshi Matsumoto: (current Nichicon President)
Corporate Auditor: Mikio Wakazono (current Nichicon Executive Director)