SDS to form joint venture in ThailandSamsung SDS said Monday it is expanding its logistics business in Southeast Asia by forming a joint venture with Acutech, Thailand’s leading customs broker company.
Acutech already has a number of star customers mainly from the electronics, automobile parts and foodstuff industries. Because Thai exports are mostly from these industries, the joint venture will create synergy upon the existing customer network, Samsung SDS said.
The Korean logistics company also expects to boost sales potential and claim more market share.
Through the joint venture, Samsung SDS will offer its cutting-edge supply chain logistics “Cello,” which provides integrated assistance on domestic and international transportation, inventories storage and customs clearance affairs. It also offers risk management through big data analysis of accidents and extreme weathers like storms, as well as calculation of customs tax for each country.
According to Samsung SDS, Thailand’s location in the center of the region is crucial for the logistics business. However, local law puts a 50 percent limit on foreign investments in the retail, construction and logistics sectors, which makes a partnership with a Thai company essential.
“Thailand is where our company’s largest-scale operations are handled among other Southeast Asian countries where we maintain a presence,” said Kim Hyung-tae, Samsung SDS’ executive vice president. “The joint venture with Acutech will create tremendous synergy.”
As part of its global logistics expansion strategy, Samsung SDS is currently looking for other joint venture opportunities by having talks with companies in Vietnam and China.
BY LEE DONG-EUN [email@example.com]