Announcement of Share Transfer of Hitachi Automotive Systems Subsidiary to Hitachi Transport System
TOKYO, Jun 27, 2019 - (JCN Newswire) - Hitachi Transport System, Ltd. and Hitachi Automotive Systems, Ltd. today announced that they have concluded a share transfer agreement to transfer 70% of shares issued by PALENET CO., LTD. a consolidated subsidiary of Hitachi Automotive Systems. PALENET engages in the development, sales and rental business of cargo handling materials (pallets).
Hitachi Transport System Group will acquire the shares as an opportunity to secure further growth, in line with its mid-term management plan, "LOGISTEED2021".
The transaction will further accelerate the reorganization of Hitachi Automotive Systems' business portfolio, by enabling further focus and strengthening of core businesses, such as powertrain, chassis and safety systems.
PALENET's operations focus on the rental of plastic cargo pallets. The users of the company's pallet rental services are manufacturers, whose demand in pallets fluctuates, depending on production volume. Their use of pallet rental services has been increasing for its convenience and flexibility to allow the use of pallets efficiently. PALENET unique pallet rental system differentiate the company from its competitors. Specifically, in the supply chain of manufacturing industries, where products are transferred from a Tier2 or below to Tier 1 and then to final assembly lines, PALENET provides RRS (Pallet Rental Relay System), which allows users to relay and circulate pallets in the supply chain. This approach saves manufacturers from returning pallets as they would normally do, supporting an efficient production logistics system. As a result, the company's business scale is projected to expand.
In today's logistics industry, service providers are required to improve efficiency through total optimization, and offer integrated solutions for the total supply chain, from procurement, production, sales, logistics to after services. In such a business environment, it is necessary for logistics companies to develop strategies aimed at offering total logistics services to enable sustainable growth, through collaboration with partners with competitive operation support systems and advanced information systems.
Hitachi Automotive Systems and PALENET discussed the growth strategy of pallets rental business and agreed that PALENET would be better positioned to continue its growth under Hitachi Transport System, which has not only accumulated deep knowledge of the logistics business and consulting capabilities, but also broad logistics infrastructure and optimum logistics solutions to customers. With this move, PALENET would be able to access the resources and customer base of Hitachi Transport System and target further growth. Hitachi Transport System will also benefit from PALENET's strengths, such as its unique relay type pallets rental system. This will allow it to strengthen its transport digital platform by establishing shared services, including supply management of logistics equipment, and combining with vehicle motion control in SSCV(1) to visualize the supply chain.
(1) SSCV: Smart & Safety Connected Vehicle
Under the business concept "LOGISTEED," Hitachi Transport System group aim to become the most preferred solution provider for all of our stakeholders. Hitachi Transport System group strive to achieve new innovations by enhancing the core domain and expanding collaborative area across businesses and industries.
Moving forward, Hitachi Automotive Systems contribute to a sustainable society and improve people's quality of life by reducing environmental impact of vehicles, minimizing traffic accidents, and improving driver comfort, in coordination with Hitachi, Ltd.'s broader technological innovations.
About Hitachi Transport System, Ltd.
Hitachi Transport System, Ltd. (TSE: 9086) headquartered in Tokyo, Japan, is total logistics solution provider. The company's consolidated revenues for fiscal 2018 (ended March 31, 2019) totaled 708.8 billion yen, and the company has approximately 46,300 employees worldwide. Under our brand slogan "Taking on the Future" and our business concept "LOGISTEED," the Hitachi Transport System Group is committed to expand collaborative areas across businesses and industries and create new innovation exceeding the domain of logistics with enhancement of logistics (Smart Logistics) as a function as our core target. For more information, please visit the company's website at http://www.hitachi-transportsystem.com/en/.
About Hitachi Automotive Systems, Ltd.
Hitachi Automotive Systems, Ltd. is a wholly owned subsidiary of Hitachi, Ltd., headquartered in Tokyo, Japan. The company is engaged in the development, manufacture, sales and services of automotive components, transportation related components, industrial machines and systems, and offers a wide range of automotive systems including engine powertrain systems, electric powertrain systems and integrated vehicle control systems. For more information, please visit the company's website at http://www.hitachi- automotive.co.jp/en/.
Source: Hitachi, Ltd.
Copyright ©2021 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.
More Latest Release >>
Eisai to Present Latest Data on Pipeline Assets in the Area of Alzheimer's Disease and Dementia at the 15th International Conference on Alzheimer's and Parkinson's Disease
Mar 05, 2021 17:51 JST
MHI Group Presents "Best Innovation 2020" Awards for Activities that Contribute to Reducing Environmental Loads
Mar 05, 2021 09:30 JST
Billboard Hot 100 #1 Hit of the Year Band Member Partners with UREEQA
Mar 04, 2021 19:50 JST
Honda to Begin Sales of Legend with New Honda SENSING Elite
Mar 04, 2021 16:29 JST
Eisai to Support Construction of Screening Framework for the Novel Coronavirus Infection in Kenya
Mar 04, 2021 09:12 JST
Chiseikan Dojo in Kyoto Grand Opening Event: "When in danger, how can you best protect yourself?"
Mar 04, 2021 07:00 JST
Hitachi Developed the Hitachi Electronic Signature Service, to Eliminate Personal Seals with High Authenticity of Information by Blockchain Technology
Mar 03, 2021 11:48 JST
DENSO, KDDI Research 5G's use in Automated Driving to Achieve Safe and Secure Mobility
Mar 03, 2021 11:16 JST
Toyota Plans to Issue 'Woven Planet Bonds'
Mar 02, 2021 15:34 JST
Lockheed Martin and NEC Put AI to Work on Programs like NASA's Artemis Mission
Mar 02, 2021 14:03 JST
New Drug Approval for in-House Developed Anti-Insomnia Drug Dayvigo (Lemborexant) in Hong Kong
Mar 02, 2021 09:06 JST
Mitsubishi Power Commences Development of World's First Ammonia-fired 40MW Class Gas Turbine System
Mar 01, 2021 18:46 JST
MHI Machine Tool Develops Gear Shaping Machine for High-Precision Small-Module Gears Used in Robots
Mar 01, 2021 18:36 JST
Flying Finn Rovanpera Claims the Championship Lead in the Toyota Yaris WRC
Mar 01, 2021 10:46 JST
BYD to Help Kyoto Reach Japan's 2050 Carbon Neutral Goal
Feb 26, 2021 11:20 JST
Fujitsu and University of Toronto Researchers Develop Quantum-Inspired Technology to Optimize Radiation Treatment Plans for Brain Tumors and Other Diseases
Feb 26, 2021 10:59 JST
DENSO and Yamato Transport Develop D-mobico, Compact Mobile Refrigerator
Feb 25, 2021 19:28 JST
Mazda Production and Sales Results for January 2021
Feb 25, 2021 17:33 JST
Honda Reports Production, Sales and Export Results in January, 2021
Feb 25, 2021 15:27 JST
Toyota's Global Sales and Production Up Year-on-Year in January for Fifth Consecutive Month
Feb 25, 2021 15:12 JST