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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. (headquarters: Chiyoda-ku, Tokyo; President & CEO: Masami Iijima) has reached a basic agreement with Jinjiang International Holdings Co., Ltd ("Jinjiang Group") to make a 49% investment in Shanghai Jinjiang International Cold Logistics Development Co. Ltd. ("JCL"), an affiliated company of Jinjiang Group, and contracts related to capital participation were signed on May 24. The aim is for operation of the new JCL to begin around September this year after application for the approval of the Chinese governmental authorities and Mitsui & Co. completing payment of the capital.
China has seen a rapid acceleration in demand for chilled and frozen food products, along with increased interest in food safety and reliability, as a result of growth in the consumer market, and the development and upgrading of cold storage and distribution capacity has become a pressing challenge. JCL possesses one of the leading customer bases within Shanghai City, and is a leading affiliated partner of the Jinjiang Group, which currently possesses a 20% share of in the cold storage capacity market. JCL plans to strengthen its business platform in the future by implementing measures to expand the scale of its cold storage and distribution facilities in response to the needs of a growing market, as well as introduce Japanese-quality cold chain logistics technology and know-how and build Japan-China logistics services.
In the future, Mitsui & Co. intends to continue working to develop Chinese cold chain logistics by expanding JCL's operation into the Yangtze River delta market (a region located inland from Shanghai with a population of 150 million) with a view to a growth strategy that includes the development of business in other major cities in China and the newly emerging economies of Asia.
Mitsui &Co. aims to implement expansions and add value to its comprehensive logistics business through its existing Chinese warehouse business, which supports international trade, and existing international forwarding business.
Jinjiang Group is a Shanghai-based business group under the umbrella of Shanghai City, with core business in the six fields of hotels, travel, logistics, real estate, development and finance. The Group has one of the largest comprehensive hotel and tourist service in the country, with over 89,000 rooms in 31 provinces and 137 cities throughout China (capital - 2 billion yuan; total assets - 17 billion yuan).
|Company name||Shanghai Jinjiang International Cold Logistics Development Co. Ltd.|
|Investment ratio (after Mitsui investment)||Shanghai Jinjiang International Industrial Investment Company Limited 51%
Mitsui & Co., Ltd. 49%
|Amount of Mitsui investment||Mitsui investment: 112.75 million yuan (approx. 1.44 billion yen)|
|Number of employees||Approximately 300|
|Major bases||Wujing Warehouse (location: Shanghai, China)
Freezer capacity: 56,000 tons
Details: largest cold storage facility in the Jinjiang Group
Wujong Warehouse (location: Shanghai, China)
Freezer capacity: 5,000 tons
Details: located alongside Wai Gao Qiao Port; new warehouse currently under construction
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