Hyundai Glovis opens new office in SingaporeHyundai Glovis opened an office in Singapore to strengthen its sales network in the Asia Pacific emerging markets, the company said Wednesday.
Singapore is seen as a logistics hub linking Southeast Asia, South Asia and the Middle East.
The logistics arm of Hyundai Motor Group said the office could add 110 billion won ($97 million) in annual revenue to the company starting from 2022.
The company plans to use the office to monitor its overall bulk shipping business in the Asia Pacific. According to Hyundai, many global shipping companies already have logistics bases in Singapore to handle goods delivered to or within Asia.
Using the office, the company hopes to ink deals with new customers and offer new services to existing clients.
According to data from supply chain market research company Armstrong & Associates, the third-party logistics market for emerging economies in the Asia Pacific such as Vietnam, Indonesia and Thailand amounted to $46 billion in 2016 and is growing.
Third-party logistics refers to companies outsourcing their distribution and fulfillment to companies unrelated to themselves or their customers or suppliers.
The new office is established under a Chinese subsidiary. Hyundai said it considered potential synergies between the office in Singapore and China as they are both hub countries for bulk shipping in Asia and can handle large trading volumes.
Once operations of the new office are stabilized, the Korean company plans to expand its local sales network, though it did not give detailed hiring or office expansion plans on Wednesday.
“Expanding our business presence to emerging countries near Singapore like Vietnam and Pakistan will be our priority,” the company said in a statement.
BY KIM JEE-HEE [email@example.com]