Kintetsu World Express to form distribution unit in China

0 Comments | Asian Political News, August 19, 2002

TOKYO, Aug. 12 Kyodo

Japan's second largest forwarder Kintetsu World Express Inc. said Monday it will set up a distribution unit in Dalian, northeastern China, on Oct. 1.

The new firm, Dalian Kintetsu Logistics Co., will be capitalized at $200,000 and owned 100% by Kintetsu Far East Development Co., a Chinese unit owned wholly by the Kintetsu World Express group.

The new subsidiary is designed to respond to increasing demand from Japanese companies in the Dalian region for cargo storage, distributive processing and delivering services.

Kintetsu World Express aims for operating revenues of 13.95 million yen from the new project in fiscal 2002 ending in March 2003, 60 million yen in fiscal 2003, and 123 million yen in fiscal 2004.

The company said the establishment of the Chinese unit will not affect its consolidated earnings projections for the current year to March 2003.