To Provide Logistics Services to CP Group of Thailand
Hyundai Glovis announced on May 19 that it has recently established a subsidiary in Thailand to provide logistics services to local companies.
The company launched Hyundai Glovis Logistics Thailand in cooperation with its two local partners. As Thailand limits the proportion of foreign investment in the logistics sector to less than 50 percent, it joined hands with Summit, a Thai auto parts maker, and EAL, a Thai logistics company. It did not disclose the equity distribution among the three partners.
Hyundai Glovis previously launched subsidiaries in Vietnam and Indonesia and plans to enter the ASEAN market in earnest with the establishment of a Thai corporation. In particular, in Thailand, it starts a logistics service business using electric vehicles, going beyond its main business of finished vehicle transportation.
In Thailand, Hyundai Glovis plans to forge partnerships with excellent local food and distribution companies, establish a supply chain for the automobile industry and develop third-party logistics for global manufacturers in Thailand.
As its first business, Hyundai Glovis Logistics Thailand will provide logistics services to CP Group, the largest conglomerate in Thailand. CP Group racked up about 72 trillion won in sales in 21 countries around the world through CP Food, a food business company, CP All, a distribution company, and True, a communications and media company in 2021. It runs Macron, a grocery chain, and Lotus, a large retail chain, as well as about 13,000 7-Eleven convenience stores across Thailand.
Hyundai Glovis will start delivering goods from local CP logistics centers to 7-Eleven stores throughout Bangkok with 150 electric trucks within 2022.
The two companies have agreed to develop various business models including green logistics using electric vehicles and hydrogen cars, smart logistics using urban logistics centers, drones and robots, and discovering new markets through sales to large local shippers.