Strong Presence in Malaysia
CJ Korea Express Co., South Korea’s largest courier service company, said on September 8 that it has bought a stake in Century Logistics Holdings Berhad, No. 2 logistics company in Malaysia. The company bought a 31.4 percent stake in Century Logistics through its Singapore-based wholly owned subsidiary CJ Korea Asia Pte Ltd. for 47.1 billion won (US$43.17 million), becoming the largest shareholder in the Malaysian firm. Once CJ Korea Express Malaysia and Century Logistics are merged, the Korean firm will be the dominant player in the Malaysian logistics sector.
Founded in 1970, Century Logisitics has strong points in cross-border logistics such as contract logistics, international logistics and inbound logistics, posting about 86.6 billion won (US$$79.38 million) in sales last year. It also has Halal certification, which is essential to do business in an Islamic community.
With the latest deal, CJ Korea Express will be able to strengthen its competence in the logistics market in Malaysia which is considered one of developed countries in Southeast Asia, early establish the logistics network in pan-Indochina peninsula and push into the Southeastern Asian logistics market.
Malaysia is currently in the early stage of e-commerce market growth. CJ Korea Express is expected to expand its logistics business and make safe entry into the local market by combining its expertise and competence as the domestic market leader and Century Logistics’ nationwide network and infrastructure.
In particular, the company expects to create a synergy with its food making affiliate CJ Cheiljedang Corp., which has been tapping into the Halal food market. CJ Cheiljedang exports Halal foods to Malaysia and Singapore. As hallyu has been spread in Malaysia over recent years, an increasing number of people is interested in Korea and Korean culture. Based on the acquisition of Century Logistics, CJ Korea Express is planning to evolve hallyu further from culture to economy.