Kintetsu World Express Inc., the nation's second-largest transport and delivery firm, said Monday it will set up a distribution unit in Dalian, northeastern China, on Oct. 1.
The firm, to be called Dalian Kintetsu Logistics Co., will be capitalized at $200,000 and owned 100 percent by Kintetsu Far East Development Co., a wholly owned Chinese unit of the Kintetsu World Express group.
The new subsidiary will address increasing demand from Japanese companies in the Dalian region for cargo storage, distributive processing and delivery services.
Kintetsu World Express aims to generate operating revenues of 13.95 million yen from the new project in the 2002 business year, 60 million yen in 2003 and 123 million yen in 2004.
The company said the establishment of the Chinese unit will not affect its consolidated earnings projections for 2002.
Kintetsu World Express added that Kintetsu World Express (U.S.A.) Inc. will absorb its own wholly owned unit, Kintetsu Worldwide Logistics Inc., on Oct. 1. in a bid to beef up the efficiency of the Japanese firm's logistics business in the U.S.