Food wholesaler Kokubu makes Shanghai logistics firm wholly owned unit
TOKYO, NNA - Food wholesaler Kokubu Group Corp. has acquired an additional stake in Shanghai Hengfu Logistics Co. to make it a wholly owned subsidiary in efforts to accelerate its business expansion in China.
Kokubu Group obtained a 29.88 percent stake in Shanghai Hengfu in 2016 by accepting new shares issued by the Shanghai-based logistics company. The Tokyo-based company announced Friday the purchase of the remaining shares of Shanghai Hengfu for an undisclosed amount of money.
Shanghai Hengfu has large logistics centers in Shanghai and Beijing, accommodating services for room-temperature, chilled and frozen products, with distribution functions connecting major cities through highways, according to Kokubu Group. Shanghai Hengfu recorded 56 million yuan ($8.65 million) in sales in the year through December 2020.
In collaboration with Weifang Sanhui Logistics & Co., another Kokubu Group logistics affiliate in Shandong Province, north of Shanghai, Shanghai Hengfu will expand its business into the southern China area centering in Guangzhou and Shenzhen in Guangdong Province as well as the southwestern China area centering in Chengdu, Sichuan Province, the Japanese company said.
It will also offer more logistics proposals to Japanese and Chinese retailers and restaurant chain operators and proceed with collaborations with Japanese makers, together with other Kokubu Group wholesaling business companies. (NNA/Kyodo)