Japan’s Hitachi Transport agrees to buy Czech logistics firm
Hitachi Transport System Ltd. reached a basic agreement Wednesday to acquire Czech logistics and distribution company ESA s.r.o. for an estimated ¥3 billion ($25.7 million).
Hitachi Transport System Ltd., which will take a 51% stake in ESA s.r.o., aims to establish a transport network in Europe to serve Hitachi Ltd. and the growing number of Japanese manufacturers operating there. ESA owns 27 distribution facilities, primarily in the Czech Republic, and operates about 700 transport vehicles. Hitachi Transport plans to transform the Czech concern into a subsidiary around December. ESA is expected to handle shipments of LCD televisions as well as the parts Hitachi manufactures in the Czech Republic.
Hitachi Transport aims to eventually handle cargo shipments and provide other services for companies outside the Hitachi group, such as Japanese automakers with factories in Eastern Europe, in addition to local manufacturers. By increasing its distribution outsourcing in Eastern Europe and other emerging markets, Hitachi Transport aims to double revenue from international distribution operations to ¥150 billion ($1.287 billion) in fiscal 2010. (tradingmarkets.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.