JAPANESE forwarder Nissin Corp has expanded its network in China by setting up a logistics joint venture in Changshu in Jiangsu province – and opening a representative office to service Tianjin.
Changshu Nissin-Sinotrans Transportation provides distribution services for parts and finished goods to electronics manufacturers.
The company is capitalised at US$700,000 (HK$5.4 million) and is owned by Nissin (50 per cent), Changshu Sinotrans (20 per cent), Jiangsu Sinotrans (20 per cent) and Sinotrans (10 per cent).
The company handles imports of raw materials, semi-finished goods and parts, along with exports of finished goods and a local delivery service.
It forwards cargo and containers between ports, factories and warehouses. The company, with 30 employees, expects sales to top 80 million yen (HK$7.4 million) in the first year, rising to 200 million yen in three years.
In August 1992, Nissin founded Shanghai Gaosin Trade & Warehousing Industrial in the Hoto region of Shanghai. It was the first joint venture formed by a Japanese logistics company in Shanghai. Last year it started doing large-scale logistics business after obtaining a licence for international cargo handling and transport agency business.
The company has so far opened representative offices in Shanghai, Dalian Shenzhen and Beijing. Tianjin is an important industrial district located in the Bo Hai Economic Zone and functions as a gateway to Beijing and other regions in the northwest.