Nippon Yusen Kabushiki Kaisha (NYK) has decided to reorganize its logistics business structure to further strengthen the domestic logistics business across Japan by transferring Yokohama Kyoritsu Warehouse Co. Ltd. (YKS) to Yusen Logistics Co. Ltd. (YLK).
By taking advantage of YKS' strengths in refrigerated and frozen warehouse operations, in addition to the food and distribution processing business bases of the YLK Group, NYK will accelerate new business development as well as meet various customers’ demands.
1. Outline
NYK will conduct a company split (absorption-type split) in which the NYK-owned shares of YKS will be transferred to YLK, NYK’s wholly owned subsidiary.
2. Purpose of Reorganization
Through the following synergistic effects, the YLK Group will strengthen its competitiveness in the logistics business across Japan and provide a stable service supply for the future.
(1) Strengthening Domestic Food Distribution Business
The YLK Group will strengthen its domestic food distribution business through collaboration with YKS' strengths in the food and cold storage business.
(2) Strengthening Contract Logistics Business through Exchange of Human
Resources and Technology
The YLK Group will improve its capabilities in the domestic contract logistics business by making use of YKS' experienced human resources in warehouse operations, distribution processing, transportation, delivery operations, etc.
(3) Expansion of Business
Utilizing its global transportation network, the YLK Group will try to create new business chance by offering logistics solution with existing food storage and distribution processing services.
3. Schedule of this split
Conclusion of contract: April 30, 2020
Effective date: July 1, 2020
