SG Holdings, Seino Holdings Conclude Basic Agreement Towards Business Alliance
SG Holdings Co., Ltd. (Head office: Minami-ku, Kyoto-shi; Chairperson and CEO: Eiichi Kuriwada) and Seino Holdings Co., Ltd. (Head Office: Ogaki City, Gifu Prefecture; President and Chief Operating Officer: Yoshitaka Taguchi) announce today they have concluded a basic agreement to proceed with discussions on a business alliance aimed at providing highly sustainable and convenient logistics services consistent with the business environment surrounding the companies and the entire logistics industry.
1. Background to the Agreement
Amid the expansion of electronic commerce, the transport and logistics industry to which SG Holdings and Seino Holdings belong has experienced growth in transport opportunities as well as increasing sophistication and diversification of customer needs. Meanwhile, there has been a pronounced shortage of vehicle drivers and a resulting increase in wages.Overall, the business environment remains challenging.
In this environment, the companies consider the provision of highly sustainable and convenient logistics services to be their social mission as transport and logistics companies. The companies have therefore agreed to expand beyond their own corporate frameworks and proceed with discussions on joint operation of long-haul transportation, joint deliveries and other business collaboration while conducting trial operations.
2. Future Initiatives
Beginning today, based on the alliance framework, SG Holdings and Seino Holdings will form working teams to proceed with discussions on a full-scale alliance as well as conduct trial operations on specified transport routes and in specified areas to enhance the effectiveness of the business alliance.
- The companies will leverage their respective expertise and resources to conduct joint operation of long-haul transportation, joint deliveries and other business collaboration in order to help resolve labor shortages, which remains a social issue in Japan. This will enable the companies to provide greater value to customers through more efficient and advanced logistics solutions.
- The companies will enhance the industry's level of efficiency, thereby ensuring thorough compliance with labor laws and other regulations, as well as reducing the number of traffic accidents and the environmental burden.These initiatives will facilitate sustainability in the logistics industry.
- The companies will strengthen their governance to maintain order in the industry and fulfill their social responsibility of supporting social infrastructure.
3. Impact on Financial Results
The impact of this agreement on consolidated financial results of SG Holdings and Seino Holdings will be minimal, and there is no change to the earnings forecasts of either company.
4. Overview of Companies
Overview of SG Holdings Co., Ltd.
|Company name||SG Holdings Co., Ltd.|
|Establishment||March 22, 2006
※March 22, 1957 (Sagawa Express founded)
|Head office location||68 Kamitobatsunoda-cho, Minami-ku, Kyoto-shi, Kyoto, Japan|
|Representative||Eiichi Kuriwada, Chairperson and CEO|
|Capital||11,882 (Millions of yen)|
|Business description||Delivery business, logistics business, overseas/international transport business, real estate business, logistics systems related businesses, other businesses|
Overview of Seino Holdings Co., Ltd.
|Company name||Seino Holdings Co., Ltd.|
|Establishment||November 1, 1946|
|Head office location||1, Taguchi-cho, Ogaki City, Gifu Prefecture, Japan|
|Representative||Yoshitaka Taguchi, President and Chief Operating Officer|
|Capital||42,481 (Millions of yen)|
|Business description||Road freight transport, consigned freight forwarding, warehousing, air freight agent, customs clearance, international multimodal transport, other businesses|