Japan’s SG Holdings Group, the Sagawa Express parent company, willmerge its separate international express and logistics companies in March.
Sagawa Global Logistics Co., Ltd. and Sagawa Global Express Co., Ltd.will become one company with the name of Sagawa Global Logistics Co., Ltd. with effect from March21, 2007, SG Holdings said in a statement. It will have about 1,500 employees.
“By consolidating all logistics operations and functions, we aim toachieve an international standard level for the logistics industry, by increasing managementefficiency and operation speed,” the company said. The integration of both companies’ know-howwould increase synergies and provide high quality services, in accordance with customer needs, itadded.
SG Holdings is keen to expand outside its large domestic market inJapan where market leaders Sagawa Express and Yamato Transport face increasing competition fromJapan Post and international express operators.
In December 2006, it linked up with China Post to provide expressparcel distribution between Japan and China. Each partner is responsible for the local distributionof goods from the other country. It also set up operations in Malaysia last summer.
