SEINO HOLDINGS CO., LTD., and MitsubishiElectric Corporation have concluded a stock purchase agreement under which Seinowill acquire 66.6 percent of the common shares of Mitsubishi Electric Logistics Corporation currently held by Mitsubishi Electric, and a shareholder agreement governing arrangements among shareholders regarding the business operations of the logistics company after the transaction.
Subject to regulatory approvals from relevant authorities, the share transfer is expected to be concluded around October 1 2024 the company will become a subsidiary of Seino, which will hold 66.6 percent of the shares, and an equity-method affiliate of Mitsubishi Electric, which will have the remaining 33.4 percent.
sustainable logistics supply chain
The importance of building a sustainable logistics supply chain is growing in Japan, where labor shortages are weakening long-distance transportation capabilities, and emergencies such as pandemics and disasters have been shown to disrupt supply chains.
Seino has been promoting initiatives to streamline its entire logistics operations, such as establishing new domestic bases
Other pressures include the increasing diversity of goods being shipped and the growing complexity of transportation due to the globalization of production bases and sales channels. Under such circumstances, Seino has been promoting initiatives to streamline its entire logistics operations, such as establishing new domestic bases and expanding logistics functions in various areas, focusing on transitioning from an “LTL trucking company” to a “logistics company”.
three focus areas
In Seino’s “Medium to Long-term Management Direction - Desired State and Roadmap 2028” formulated in June 2023, Seino has positioned its Electronics Solutions Division, Automotive Battery Logistics Division, and Healthcare Solutions Division as the “three focus areas” in its logistics operations, supporting the optimization of global companies’ supply chains by enhancing industry-specific solutions through improved compatibility with Seino’s overseas networks.
Mitsubishi Electric, together with its subsidiary Mitsubishi Electric Logistics, has been working to optimize the supply chain of the entire Mitsubishi Electric Group by addressing common business issues, such as the driver shortage in Japan’s logistics industry (“2024 problem”) and consolidating international transport tenders.
streamlining customer supply
This transaction will enable Seino to strengthen its logistics capabilities for electronics
Mitsubishi Electric Logistics has leveraged its understanding of Mitsubishi Electric’s businesses, products, and related handling issues to increase the efficiency and overall strength of the group’s logistics operations.
This transaction will enable Seino to strengthen its logistics capabilities for electronics and help streamline customer supply chains through Mitsubishi Electric Logistics’ expertise in the transportation of large equipment and facilities, semiconductors, and precision machinery as well as the new subsidiary’s existing logistics centers and other assets, significantly strengthening Seino’s transformation into a logistics company.
supply network
Additionally, Mitsubishi Electric Logistics aims to leverage Seino’s domestic and overseas transportation infrastructure, networks, information systems, and digital platforms to help Mitsubishi Electric further streamline its logistics operations, from procurement to sales, as well as establish a more stable supply network and provide better products and services to its customers.
Moreover, Mitsubishi Electric Logistics intends to leverage Seino’s domestic and international customer base for increased corporate value by expanding its service offerings beyond the Mitsubishi Electric Group.