September 25, 2014
In conjunction with the rapid modernization of living styles in Vietnam resulting from economic growth, a shift is being made from traditional dietary practices to eating habits that incorporate aspects of foreign cultures, with Japanese supermarkets, convenience stores and restaurants expected to expand further into the country. At the same time, however, there is a shortage of high-performance cold storage that can meet domestic needs, so it is expected that upgrades to the country's present cold chain will be required.
As a part of the strategy to expand its logistics business further in Asia, Kawasaki Kisen Kaisha, Ltd. ("K" Line) has agreed to establish a joint venture with Cool Japan Fund Inc. and Japan Logistic Systems Corp. and to construct and operate a cold storage in the outskirts of Ho Chi Minh City in Vietnam.
This project is determined to be invested by Cool Japan Fund Inc., an organization that seeks to support and promote the development of overseas demand for Japanese products and services that now enjoy increasing international appeal. The development strategies of the three companies for the cold storage in Vietnam are in alignment, and an agreement has been concluded to establish this new joint venture through joint investment.
The new joint venture company will construct and operate a cold storage with total floor area of approximately 9,300 square meters on land with an area of approximately 20,000 square meters. Bangkok Cold Storage, a member company of the "K" Line Group, has been engaged in the cold storage business in Bangkok, Thailand for 26 years since 1989 and has received acclaim from customers for the high quality of its services. Bangkok Cold Storage's experience and expertise will be transferred to the new joint venture company, with the same high-quality services optimized for storing foods and food ingredients from Japan being provided. The knowledge of Japan Logistic Systems Corp., which has been doing business in Vietnam for more than 20 years, will be utilized to provide incidental services such as delivery arrangements.
Through this new warehouse business, the "K" Line Group will provide services tailored to the needs of customers, focusing on freight shipments from Japanese customers to Vietnam which are expected to increase in the future, and thereby further develop and expand its logistics business in Asia.
Overview of Joint Venture Company
1. Joint Venture Company
| (1) | Name | To be decided |
| (2) | Location | Outskirts of Ho Chi Minh City, Socialist Republic of Vietnam |
| (3) | Representative | To be decided |
| (4) | Business activities | Cold Storage business and related businesses |
| (5) | Capital | US$15 million (approximately 1.5 billion yen) |
| (6) | Date of establishment | January 2015 (planned) |
| (7) | Start of business | January 2016 (planned) |
| (8) | Investment ratio | Japan Logistic Systems Corp.: 26.0% "K" Line: 25.0% Cool Japan Fund Inc.: 49.0% |
Overview of Joint Venture Partners
(1) Cool Japan Fund Inc.
| (1) | Name | Cool Japan Fund Inc. |
| (2) | Location | 6-10-1 Roppongi, Minato-ku, Tokyo |
| (3) | Representative | Nobuyuki Ota, CEO |
| (4) | Business activities | Investment business |
| (5) | Capital | 38.5 billion yen |
| (6) | Date of establishment | November 25, 2013 |
(2) Japan Logistic Systems Corp.
| (1) | Name | Japan Logistic Systems Corp. |
| (2) | Location | Shinbashi Sumitomo Building, 5-11-3 Shinbashi, Minato-ku, Tokyo |
| (3) | Representative | Hirotake Nakanishi, Representative Director and President |
| (4) | Business activities | Cargo vehicle transport business, freight forwarding business, warehousing business |
| (5) | Capital | 3.145 billion yen |
| (6) | Date of establishment | October 13, 1944 |
Schedule
September 25, 2014: Master agreement on establishment of joint venture signed
January 2015 (planned): Establishment of the joint venture company
Forecast
Establishment of this new joint venture company will not impact the company’s consolidated financial results for the fiscal year ending March 2015.