Logistics Growth Driven by Global Network Expansion

「Against this backdrop of demand trends, in the logistics business (アルプス物流, Prime Market of the Tokyo Stock Exchange), we pursued expansion in three areas, namely regions, markets and customers, and services, using an electronic-component logistics platform centered on shared storage and shared collection and delivery.」

「As part of our regional strategy, we worked to develop facilities in existing markets such as Japan and China, as well as facilities and networks in India and Eastern Europe. Under our market and customer strategy, we expanded our customer base in the automotive and industrial-equipment sectors in addition to customers such as major electronic-component manufacturers and trading companies.」

「During the six-month period ended in the second quarter, freight volumes, which had declined due to the impact of COVID-19, increased mainly in Japan across all areas of the storage, transportation, and import-export businesses. In addition, the reorganization of the domestic trunk-route delivery network, the promotion of IT adoption in the storage business, and efforts to improve the efficiency of inbound and outbound warehouse operations resulted in year-on-year increases in both net sales and operating income.」

「Against this backdrop of demand trends, in the logistics business (アルプス物流, First Section of the Tokyo Stock Exchange), we are focusing on developing satellite facilities in existing markets such as Japan and China, establishing facilities and networks in India and Eastern Europe, and expanding sales to existing customers, while pursuing new business opportunities.」

「Under these conditions, as part of our efforts to improve productivity, we began operating a new warehouse in Japan equipped with large-scale automation equipment. Overseas, we continued expanding our facilities and networks, and in China established a specialized customs-clearance subsidiary in August to strengthen our capabilities for expanding the import and export business by accelerating customs-clearance operations.」

「Although restrictions resulting from COVID-19 remain, in the second year of the current three-year Fourth Medium-Term Management Plan, we will promote the following strategies and initiatives and seek to expand our business globally, with a focus on our core business activities.」

「In addition, as part of efforts to strengthen automotive-related logistics, we will establish a joint venture with 株式会社ロジコム and, as the first stage of our overseas expansion, establish a local subsidiary in India to expand our automotive-related business.」

「In July 2019, we completed construction of a large new warehouse in Thailand and began operations.」

「In April 2019, as a new initiative to strengthen automotive-related logistics, we established a joint venture with 株式会社ロジコム. By combining its technology and experience in automotive components with our expertise in expanding logistics operations overseas, we aim to grow our automotive-related business outside Japan. In Europe, we also opened an office in Hungary as a foothold for expansion into Eastern Europe.」

「Overseas, we also expanded locations to strengthen the business base. In eastern China, we expanded the Taicang warehouse in response to increased demand; in ASEAN, we relocated and expanded the Singapore warehouse to expand the warehousing business; and we developed the operating structure to support business expansion in India and Vietnam. We also began construction of a new warehouse in Thailand, where cargo volumes of electronic components and automotive-related parts are expected to increase, and continued preparations for expansion into Eastern Europe.」

「In Thailand, where cargo volumes of electronic components and automotive-related parts are expected to increase, we also began construction of a warehouse in August this year. In Europe, we expanded the warehouse in Germany.」

「In Japan, we completed a large new warehouse in Kazo, Saitama Prefecture, in May this year, integrated the operations of the Hanyu sales office and began operations. Overseas, we worked to improve the operating efficiency and productivity of warehouses that had expanded rapidly through the previous year, thereby strengthening profitability. In eastern China, we expanded the warehouse in Taicang in response to increased demand; in ASEAN, we relocated and expanded the Singapore warehouse to expand the warehousing business; and in Europe, we expanded a warehouse in Germany to increase external sales.」

「Overseas, we expanded storage capacity by reorganizing warehouses in Hong Kong in line with business expansion. We also opened a Chongqing branch in Chongqing, China, established local entities in Hanoi, Vietnam, and Gurugram near Delhi, India, opened a sales office in Dallas, Texas, United States, and established our second local entity in Mexico.」

「In Japan, we opened a warehouse in Funabashi, Chiba Prefecture, to support future expansion of the import/export business. We also acquired a site in Kazo, Saitama Prefecture, and began construction of a warehouse scheduled for completion in May 2018. Overseas, we expanded storage capacity by reorganizing warehouses in Hong Kong in line with business expansion, and established a local entity in Hanoi, Vietnam, and a sales office in Dallas, Texas, United States.」

「Under these demand trends, the logistics business (Alps Logistics Co., Ltd.; Second Section of the Tokyo Stock Exchange) expanded cargo volumes by globally expanding its locations, warehouses and network, and through sales activities to develop customers in new markets and expand its service areas, while working to improve productivity in each of the transportation, warehousing and import/export businesses.」

「In Japan, we opened a warehouse in Funabashi, Chiba Prefecture, and began construction of a warehouse in Kazo, Saitama Prefecture, scheduled for completion in May 2018. Overseas, we established a local entity in Hanoi, Vietnam, opened a sales office in Texas, United States, and continued developing locations and transportation networks in Mexico.」

「In the logistics business, we promoted expansion of the global network and integrated domestic and overseas consultative sales, while working to improve productivity in each of the transportation, warehousing and import/export businesses.」

「In Japan, we newly established warehouses in Sagamihara, Kanagawa Prefecture, and Kanazawa, Ishikawa Prefecture, and expanded transportation networks in Kyushu and the Hokuriku region. Overseas, we expanded warehouses at existing locations including Wuxi, Jiangsu Province, China, Bang Na, Thailand, and Incheon, South Korea. In ASEAN, one of our priority strategic regions, we also expanded warehouses and opened a representative office in Manila, Philippines, strengthening logistics infrastructure and promoting future global growth.」

「In ASEAN, which we have designated as a priority strategic region, we expanded our global network, including by establishing a representative office in the Philippines, and worked to improve productivity in each of the transportation, warehousing and import/export businesses, in addition to promoting integrated domestic and overseas consultative sales.」

「In the logistics business, the electronic-components industry, our main customer base, is expected to continue growing as the digitalization of equipment and automobiles advances and demand expands in emerging markets. We will continue strengthening logistics infrastructure, including our network, and promoting global consultative sales to secure and expand cargo volumes, while working to strengthen the business structure through productivity improvements and other measures.」