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)
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