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March 23, 2004 MOL, Sinotrans Launch Joint Venture to
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| Name: | SINOTRANS-MOL Shipping Co., Ltd. |
| Location: | Guangzhou city, Guangdong Province, China |
| Paid-in-capital: | US$8 million |
| Ownership: | MOL 49%, Sinotrans 51% |
| Directors: | Chairman - Wang Chunlin (Assistant to President
of Sinotrans, Ltd.) Vice Chairman - Setsuyasu Hagiwara (MOL Managing Executive Officer) |
| Number of employees: | 15 (planned) |
| Foundation date: | April 2004 (date to acquire business license) |
Objectives and future approaches
The Chinese automobile market showed
drastic
growth in 2003, exceeding 4.5 millions
units.
MOL expects China to emerge as an automobile
exporter in the near future, while
foreign
automakers require pure car carriers
(PCCs)
to transport completed cars. To meet
these
needs, MOL decided to establish a joint
venture
with Sinotrans to transport complete
cars
in China. The establishment of Sinotrans-MOL
Shipping will allow the deployment
of top-quality
auto-related logistics services in
a broader
area of China.
Sinotrans Group offers inland transport
services,
and MOL has nearly four decades of
extensive
know how on global transport of completed
cars, making this an ideal joint-venture
combination. The new JV company will
develop
weekly service in northern, eastern,
and
southern China by launching two small-size
pure car carriers with capacities of
600-700
units this fall.