Hyundai Glovis establishes logistics joint venture in Thailand

Industry

Published: 19 May. 2022, 17:53 Updated: 19 May. 2022, 18:02

Hyundai Glovis establishes logistics joint venture in Thailand

From left: CP Group Vice Chairman Korsak Chairasmisak,CEO Tarin Thaniyavarn of CP ALL's logistics subsidiary All Now and Hyundai Glovis CEO Kim Jung-hoon pose for a photo after signing a memorandum of understanding to partner to carry out delivery orders and make the logistics process more efficient. [HYUNDAI GLOVIS]

Hyundai Glovis established a joint venture with two Thai logistics and auto parts makers, expanding business in the country.

The joint venture is called Hyundai Glovis Thailand and was established with Eastern Air Logistics and Summit Auto Body Industry, both based in Bang Phli, Thailand.

Hyundai Glovis said it had to establish a joint venture because Thailand only allows foreign companies a stake of less than 50 percent in logistics companies. It didn’t disclose how the stakes are broken down, but said Hyundai Glovis has the largest share it is allowed to hold.

The joint venture will carry out logistics orders for Charoen Pokphand (CP) Group’s companies.

It will use 150 electric trucks to deliver products from logistics centers to local 7-Eleven stores, which are operated by CP Group’s CP ALL in Thailand. More electric trucks will be added over the next five years to handle the orders.

Hyundai Glovis Thailand also plans to transport CP Group’s fresh food overseas to countries like Cambodia and Malaysia.

The joint venture signed a memorandum of understanding with CP Group, and will further work together to use electric and hydrogen vehicles for deliveries and use drones and robots at logistics centers to make the overall process more efficient.

It will also transport products of companies participating in the joint venture, delivering cars assembled by Summit Auto Body Industry.

It will carry out some of Eastern Air Logistics’ deliveries, mostly dealing orders by global manufacturing companies. Hyundai Glovis Thailand will deliver products abroad and into Thailand, while Eastern Air Logistics will deal with customs and deliveries within Thailand.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]