Japanese firms expanding in China

Hitachi Transport System and Nippon Express are ramping up operations in China to tap the area's rapid economic growth fuelled by government investment and foreign corporations, the Nikkei business daily reported.

Hitachi Transport has signed a deal with China Petroleum & Chemical Corp, or Sinopec, to provide deliveries to convenience stores at gasoline stations operated by the state-run company in Henan Province, the daily reported.

Sinopec operates about 29,000 gas stations across China, many of which have convenience stores on the same premises.

Hitachi Transport also received an order from major French autoparts maker Valeo to deliver goods to a Nissan Motor auto factory in Henan Province, the Nikkei said.

The firm projects about US$204 million in revenue from its Chinese operations in 2010.

By taking more orders in the interior, it aims to raise this to 50 billion yen in five years.

Nippon Express has formed a partnership with a major coastal shipping firm based in Chongqing, the Nikkei said. The Chinese partner has 240 cargo ships and manages a network linking 300 cities in the interior, it said.

Nippon Express aims to generate 33 percent of its revenue from international operations by fiscal 2012, up from 27 percent last fiscal year. It aims to more than triple net profit to $419 million yen over the same time span, the Nikkei reported.
(Source:www.cargonewsasia.com)