Samsung SDS joins hands with Korindo

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Wed, June 28, 2017 | 02:31

Samsung SDS joins hands with Korindo

Posted : 2017-06-19 18:57

Updated : 2017-06-19 19:09

By Kang Seung-woo

Samsung SDS has signed a strategic partnership with Indonesia's Korindo Group on the global logistics business, as the Seoul-based company is beefing up its global presence in the area.

Under the agreement, the two sides will form a partnership model and develop it into a joint venture.

The Korean firm plans to take advantage of the alliance to boost the local logistics service as well as increasing sales.

"This agreement will help Samsung SDS nurture a competitive edge in the logistics business and secure more customers," Samsung Executive Vice President Kim Hyung-tae said.

"For further growth, we will continue to advance into the potential-rich businesses."

Korindo Group Vice Chairman Park In-chul said, "Through the collaboration, the two companies will be able to combine respective strengths to create synergy effect. Korindo will increase business cooperation with Samsung SDS."

Korindo Group, a Korean-Indonesian conglomerate founded in 1969, has more than 30 affiliates in such areas as natural resources, financing, chemicals and logistics.

It was the fifth time for the system integration affiliate of Samsung to strike a joint venture contract of late.

Last year, Samsung SDS reached similar deals with Thailand's customs clearance service provider Acutech and Vietnam's air cargo terminal business ALS. Last month, it joined hands Chinese firm Kerry Logistics.

This month, it reached a 150 billion won ($132 million) agreement with another Indonesian company Aditya that has the rights to mine nickel in the Southeast Asian country.

Samsung SDS itself is an established logistics firm with the brand name Cello. It dealt with 390,000 tons of global shipments in 2016, the 10th most in the world.

In addition, it recently launched a blockchain consortium for shipping and logistics with Korea's private firms and public agencies.

Blockchain technology would enable companies to handle history of production, storage and shipment of goods, making forgery difficult.

ksw@ktimes.com