Japan's Sagawa Express to take part in Chinese delivery venture
Major Japanese parcel delivery company Sagawa Express Co. said Wednesday it has set up China’s first nationwide distribution firm with local partner China Poly Group Corp.
Poly-Sagawa Logistics Co. Ltd., a 50-50 joint venture, was established up in Shenzhen in June with 10.8 million dollars in capital and aims to start operations in September, having already received government approval, the companies said in a statement.
“Until now, foreign firms have broken up their distribution operations into business segments and could not expand beyond limited areas,” the company said. “But our company will be able to conduct operations throughout China.”
The new company will provide domestic shipping and “forwarding services related to exports and imports by land, sea and air,” the statement said.
It is aiming to bring in three billion yen (25 million dollars) in annual revenue by 2006 and have 30 offices mainly in Beijing, Shanghai and Guangdong province as well as the booming coastal regions.
It aims to cater to Chinese, Japanese, Hong Kong and Taiwanese firms in the shipment and storage of automobile and electronics parts, precision instruments, apparel and other fields, it said.
