Hyundai Glovis opens third subsidiary in SE Asia via JV in Thailand

[Source: Hyundai Glovis Co.]

Hyundai Glovis Co., the logistics unit of South Korea's Hyundai Motor Group, opened subsidiary in Thailand with ambition to build up business through networking with partners in retail, automotive, and logistics.

Hyundai Glovis Logistics Thailand was established as a joint venture with Thai automobile parts manufacturers and logistics companies.

In Thailand, foreign companies can launch business in joint venture. Foreign ownership in logistics sector is limited to less than 50 percent.

With the establishment of Hyundai Glovis Logistics Thailand, Hyundai Glovis plans to strengthen its partnership with local food and distribution companies, establish a supply chain for the automobile industry, and enter the third-party logistics (3PL) business.

Along with the opening of its new subsidiary in Thailand, Hyundai Glovis clinched an order from All Now, the logistics unit of CP Group’s distribution, to deploy 150 electric trucks to transport goods from CP Group’s logistics centers to 13,000 7-Eleven convenience stores in Thailand.

CP Group, Thailand’s biggest conglomerate, is a distribution and telecommunication company with revenue of 72 trillion won in 21 countries around the world.

Hyundai Glovis and All Now Management signed a memorandum of understanding (MOU) to develop various business models that utilize electric and hydrogen vehicles for green logistics and smart logistics.

Hyundai Glovis will also jump into the auto parts logistics service business through Summit, another one of its partners in the JV.

Hyundai Glovis will take part in Summit’s finished vehicle shipping and sale as well as warehouse logistics. Hyundai Glovis is also planning to operate a service that transports finished vehicles imported from countries like Indonesia with its car carrier trailers.

Hyundai Glovis is also considering entering the 3PL business through its partnership with Thai logistics service enterprise Eastern Air Logistics (EAL) to target the global manufacturing industry.

3PL refers to an organization’s use of third-party businesses to outsource parts of its distribution. Hyundai Glovis would be in charge of importing and exporting while EAL will handle customs clearance of imports in Thailand, shipping, and storage.

Hyundai Glovis established a subsidiary in Vietnam in 2019, its first subsidiary in Southeast Asia, and one in Indonesia last year.

“We will leverage CP Group’s logistics business to successfully enter the Thai market and continue to expand our businesses across the ASEAN countries,” said an official from Hyundai Glovis.

Shares of Hyundai Glovis closed down 3.81 percent at 201,500 won ($157.73) on Thursday.

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