Hitachi Distribution Establishes JV in China      

Japan's Hitachi Distribution said on November 19th it will set up a joint venture with China's Henan Yuxin Logistics Co. Ltd. and Zhengzhou Xinhehua Kemao Co. Ltd. in Zhengzhou, Henan province for logistics business. The venture is named Hitachi Xinxin Global Logistics Co. Ltd.
   The proposed joint venture, with a registered capital of RMB10 million and a term of 20 years, will be 51% owned by Hitachi, 29% by Yuxin and 20% by Xinhehua.
    Hitachi Distribution to date has 10 subsidiaries in Greater China located in Shanghai and Hong Kong, mainly operating logistic business in coastal regions in east, south and north of China. The new joint venture marks a first main step to enter the central and west China, a market with huge growth potential.
   Yuxin is a large Chinese logistic company which not only serves China's enterprises, also has business relationship with a couple of Japanese companies. Xinhehua engages in trade and sales, doing business with Japanese companies and Henan companies.
   The new venture will combine Yuxin's advantage in logistic infrastructure and Xinhehua's marketing capability with Hitachi's expertise in 3PL to not only serve Japanese companies in central and west China including the Hitachi Group, as well as to expand the 3PL business among Chinese companies.
   The three parties are working on preparation for the new venture with full swing. It is due to be operational in February 2009.