Nippon Express Co., Japan’s largest international freight forwarder, has acquired a 49 percent stake in NEC Logistics Ltd., the logistics arm of NEC Corp., the two companies announced on Dec. 2.
Nippon Express, commonly known as Nittsu in Japan, and NEC, one of the nation’s biggest electronics makers, made NEC Logistics their joint venture as part of a strategic business alliance to strengthen their global logistics operations.
The acquisition of the 49% stake in NEC Logistics by Nippon Express was completed on Nov. 30, and the joint venture company changed its name to Nittsu NEC Logistics Ltd. Nippon Express will increase its stake in the joint venture to 51 percent around December 2014, Nippon Express and NEC said in a joint press release.
Nippon Express boasts one of the world’s largest global logistics networks. Nippon Express and NEC are both based in Tokyo, while Nittsu NEC Logistics is headquartered in Kawasaki City, adjacent to Tokyo.
Nittsu NEC Logistics currently has about 2,100 employees on a consolidated basis. It posted group sales of ¥59.6 billion ($580 million) in fiscal 2012, which ended in March 2013.
Nittsu 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.
Meanwhile, Nippon Express also announced on Monday that it will establish a new subsidiary in Cambodia to meet growing demand for logistics services from Japanese manufacturing and other companies operating in the Southeast Asian country.
Nippon Express (Cambodia) Co. will be headquartered in Phnom Penh, Cambodia’s capital, and start operations in January next year, Nippon Express said.