From left: CP Group Vice Chairman Korsak Chairasmisak, All Now CEO Tarin Thaniyavarn, Hyundai Glovis CEO Kim Jung-hoon, Hyundai Glovis Vice President and Head of Future Business Center Park Man-soo pose for a photo after signing an agreement on business cooperation. (Hyundai Glovis)
Hyundai Glovis, a supply chain management arm under Hyundai Motor Group, said Thursday that it has launched an overseas corporation in Bangkok, as part of its business expansion strategy in the Southeast Asian market.
Hyundai Glovis Logistics Thailand, a joint venture that has been formed with local auto parts manufacturers and logistics firms, will be responsible for creating synergy with its existing logistics points in Vietnam and Indonesia, the company said in a statement.
According to the Hyundai Glovis, the foreign investment ratio is limited to 50 percent, which inevitably requires cooperation with local firms. The company said its business expansion in Thailand was spurred by the high logistics demand due to the sales network and factories of global manufacturing firms like electronic devices and auto parts makers.
Under an agreement with Thailand’s largest conglomerate CP Group, Hyundai Glovis Logistics Thailand will transport products to 7-Eleven stores across Bangkok using 150 electric buses, starting this year. CP Group runs food, retail and telecommunication business in 21 countries globally and recorded 72 trillion won of sales in the last year.
Based on the CP Group’s needs for logistics infrastructure, such as maintenance of trucks needed for logistics, Hyundai Glovis Logistics Thailand will gradually increase the number of electric trucks to the Southeast Asian country. It also hopes to make inroads into neighboring countries like Cambodia and Malaysia.
By Kim Da-sol (email@example.com