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August 5, 2004
Zero Co., Ltd.
Sumitomo Corporation
Mitsui O.S.K. Lines, Ltd.
Zero, Sumitomo Corporation, Mitsui O.S.K.
Lines and CITIC Logistics to Jointly Establish
Carrier of Finished Automobiles in China
Zero Co., Ltd. (Head Office: Yokohama, Kanagawa
Prefecture; President: Seshi Iwashita), Sumitomo
Corporation (Head Office: Chuo-ku, Tokyo;
President & CEO: Motoyuki Oka), Mitsui
O.S.K. Lines, Ltd. (Head Office: Minato-ku,
Tokyo; President: Akimitsu Ashida), and CITIC
Logistics Co., Ltd. (Beijing; Chairman: Wang
Jianzhi) have recently agreed to set up a
joint venture to provide the service of transporting
finished automobiles throughout China. The
JV is to be named Zero-SCM Logistics (Beijing)
Company Limited. CITIC Logistics is China's
major carrier in this field.
Earlier the four corporations had won the
service to carry shipments (scheduled to
begin in April 2005) from Dongfeng Motor's
plant in Huadu (Guangzhou) to across China.
Dongfeng Motor is a JV of Nissan Motor Co.,
Ltd. and Dongfeng Motor Corporation of China.
The four corporations intend to undertake
this service through the new JV, for
whose
operation they have already been licensed
and approved by concerned government
authorities.
It is scheduled for corporate registration
hopefully within August this year.
Foreign automakers in China strongly
demand
improved QCD (Quality, Cost, Delivery)
from
finished vehicle transport services.
With
a view to achieving this, the new JV
will
integrate the four partners' individual
strengths,
expertise and experience as it is designed
to be China's first inland and ocean
intermodal
carrier of finished automobiles. It
will
combine Zero's auto delivery contractor
functions,
Sumitomo's network of logistics resources
in China, MOL's ocean shipping capabilities,
and CITIC Logistics' inland carriage
capabilities.
The new JV will seek to win and build a portfolio
of contracts, headed by the one with Dongfeng
Motor, for shipment of finished vehicles
in the automotive industry. It will develop
and expand a continent-wide network of comprehensive
automobile carrier services that excel in
quality and cost competitiveness.
Profile of New Joint Venture
| 1. Corporate Name |
Zero-SCM Logistics (Beijing) Company Limited |
| 2. Establishment |
(Scheduled for) August 2004 |
| 3. Headquarters |
Beijing, Chinas |
| 4. Chairman |
Li WeiMin (President of CITIC Logistics Co.) |
| 5. Capital |
2.5 million US dollars (about 275 million
yen) |
| 6. Shareholders |
CITIC Logistics Co. (35%), Zero Co. (25%),
Sumitomo Corp. (20%) & Mitsui O.S.K.
Lines (20%) |
| 7. No. of Employees |
35 (planned for startup) |
Profile of CITIC Logistics
CITIC Logistics Co., Ltd. is a transportation
unit under the wing of CITIC Group, a prominent
business group of China. The predecessor
is CITIC Auto-Transport Co.,Ltd. (the name
was changed in October 2003). It specializes
in finished vehicles, plants,heavy loads,
chemicals, and is one of China's largest
non-automaker-owned carriers of finished
vehicles.
| 1. Corporate Name |
CITIC Logistics Company Limited |
| 2. Established |
October 2003 |
| 3. Headquarters |
Beijing, China |
| 4. Chairman |
Wang Jianzhi |
| 5. Capital |
100 million yuan |
| 6. Fleet |
312 proprietary vehicles & 800 partnership
vehicles |
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