June 10, 2010 - Yusen Air & Sea Service Co., Ltd. (Head office: Chuo-ku, Tokyo, President: Shunichi Yano, “YAS”) and NYK Logistics (Japan) Co., Ltd. (Head office: Chuo-ku, Tokyo, President: Masahiko Fukatsu, “NLJ”) announce that they have today entered into a business transfer agreement.
Nippon Yusen Kabushiki Kaisha (“NYK”) and YAS, having made preparations for the integration of the logistics business of NYK and YAS into the new Yusen Logistics Co., Ltd. on October 1, 2010, as announced in “Nippon Yusen and Yusen Air & Sea Service Execute LOI for Integration of Logistics Business” on February 25, 2010, recently reached an agreement on the method of integration. The companies have decided that integration should be made through a business transfer and that the details of the acquired assets should be determined with a transfer price of 170 million yen. Based on this, the companies have executed a formal instrument of agreement on May 28. As announced by YAS in the “Notice of Partial Revision of the Articles of Incorporation,” the head office will be relocated to Shiba-koen, Mitano-ku, Tokyo.
Looking toward the new organizational framework to be launched in October this year, the companies will seek the support of their employees through the work of the committee for preparing integration and joint training. The execution of this formal agreement will be the key step to facilitating preparations for the integration, including the application for various permits and authorizations as well as the registration and integration of organizations, systems, operations and offices other than the principal office mentioned above.
Overseas, the Steering Committee for the Integration has dispatched a team to major countries in anticipation of integration some time from April 2011, to fine tune the basic directions and procedures as well as individual situations. Based on this, the development of a system of preparatory measures for the integration has been progressing in the four key overseas regions under regional management, while subcommittees have been established in the same manner as in Japan in nearly 40 countries around the world, where the two companies have operations.
Yusen Logistics Co., Ltd. will combine air-freight forwarding, a major strength of YAS, and the sea-freight forwarding and contract logistics in which NYK Logistics (“NL”) excels, to offer optimized logistics from the standpoint of customers. For example, the company will offer a more seamless and tailored logistics service by adding high-level forwarding to buyers consolidation functions, and will also facilitate end-to-end global distribution by incorporating large-scale warehouses and truck delivery networks into forwarding. With respect to the fast growing Chinese market, we intend to greatly intensify our access to the Chinese domestic market to offer services based on the trade rights and management resources of the two companies, utilizing the combined strengths of the logistics system, which YAS has nurtured as a forwarder, and inland transportation networks in China, a market in which NL boasts expertise, including automotive logistics.
The management vision of the new integrated company is to be a true global logistics provider with world-class size and service quality. This will be achieved by bolstering sales and marketing while expanding goods handled by its logistics services, which in turn will be done through the “Plus One” project, whereby the strengths of the businesses of each entity will be enhanced and new services offered to their respective customers.