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Logistics in China
Largest domestic demand-based logistics network among Japanese companies
ITOCHU’s Logistics Services Department have placed importance on domestic demand-based logistics in China early on. About 96 logistics bases have been established throughout the country, mainly by ITOCHU Logistics (China) CO., LTD. and the Ting Hsin (Cayman Islands) Holding Group.
Through this network, 3PL and other logistics functions are being offered across China, responding to growing domestic demand accompanying the development of China’s consumer economy. These services have contributed to expanding domestic sales in China by top-grade, primarily Japanese, manufacturers in areas such as cosmetics, apparel and toiletries. Sales from logistics services in China in 2010 exceeded 15.6 billion yen for our Group, showing a high annual growth ratio of 20% over the past three years.
Additionally, ITOCHU Logistics Corporation, one of the core operational companies of the Group, has been made into a subsidiary for integrating its international logistics networks with domestic logistics functions in China. This enables us to offer one-stop services suited to our customers’ global supply chain strategies. Similar business models will be implemented in other emerging economies, aimed integrating global-level forwarding and logistics services.
ITOCHU LOGISTICS (CHINA) CO., LTD.
This 100% subsidiary of ITOCHU is the core operational company for local logistics in China, offering total logistics services of high quality. Drawing on its many years of experience in China and holding a range of licenses, the company is capable of handling diverse tasks including import, bonding, storage, distributive processing, domestic transport and export.
Our history of transactions with a great number of clients in the automotive, machinery, electrical appliance, apparel and other 3PL industries, and the rapidly growing mail order sales industry, demonstrates the outstanding performance of our services.
A new logistics center with about 70,000-sqm floor area will open in Shanghai in 2010 to accommodate continually expanding logistics demand in China.
TINGTONG (CAYMAN ISLANDS) HOLDING CORP.
This is a joint-venture with Tingyi, a major food manufacturer of China. The company possesses five local corporations and about 60 bases in China, under the management of the Ting Hsin (Cayman Islands) Holding Group. It boasts the largest logistics network among Japanese distributors, covering all areas including the inland regions. Ting Hsin’s networks have greatly contributed to expanding sales of clients, especially in the areas of foods, sundries and cosmetics, where domestic sales and distribution networks are important.
ITOCHU LOGISTICS CORP.
The market listing of shares of the former i-Logistics Corporation was canceled in July 2009, and the company changed its name to ITOCHU Logistics Corporation. As the core logistics subsidiary of the ITOCHU Group, the company engages in comprehensive international logistics involving air and sea transport, warehousing and customs clearance. By collaborating with the above two companies, the company will continue to offer seamless and global logistics services for supply chains connecting China with the world.