Nippon Express Co., Japan’s largest international freight forwarder, and NEC Corp., one of the nation’s biggest electronics makers, said on Wednesday that they have agreed to form a strategic business alliance to strengthen their global logistics operations.
Under the agreement, Nippon Express, commonly known as Nittsu in Japan, will acquire a 49 percent stake in NEC Logistics Ltd., the wholly owned logistics arm of NEC, around October this year, and NEC Logistics will change its name to Nittsu NEC Logistics Ltd.
The Nippon Express stake in Nittsu NEC Logistics will be increased to 51 percent around October next year, Nippon Express and NEC said in a joint press release.
Both Nippon Express, which boasts one of the world’s largest global logistics networks, and NEC are based in Tokyo.
NEC Logistics is headquartered in Kawasaki City, adjacent to Tokyo. NEC Logistics currently has about 2,100 employees on a consolidated basis. It posted group sales of 62.8 billion yen ($661 million) in fiscal 2011, which ended in March 2012.
NEC Logistics has overseas subsidiaries in the United States, China, Hong Kong, Taiwan, Thailand, Singapore and the Netherlands. The U.S. subsidiary, NEC Logistics America Inc., has its head office in Rancho Dominguez, California.