CJ launches joint corporation 'CJ Logistics America'
CJ Group Chairman Lee Jay-hyun / Courtesy of CJ Group
By Kim Jae-heun
CJ Group launched CJ Logistics America, Tuesday, a joint corporation consolidating two of its corporate bodies in America and Canada and merging it with DSC Logistics, which the company acquired in 2018. This is a rare move for a Korean company to combine an acquired American business with a local subsidiary. It is seen as an example of the strong determination of CJ Group Chairman Lee Jay-hyun, who hopes to lead in logistics not only in Asia but also the world.
The joint corporation will unify the manpower, logistics infrastructure and platforms owned by the three former subsidiaries across the United States and Canada. There are a total of 280 square kilometers of warehouse space there along with 70 facilities established for shipping. CJ Logistics Canada will operate under CJ Logistics America as a subsidiary.
The CJ Logistics' branches in America and Canada had only been targeting Korean companies there as customers, but the new joint corporation will expand to target global firms.
It will also upgrade its logistics service, which originally focused on the United States. Now, it plans to expand the service all over North America
In the near future, CJ Logistics will utilize its global network to expand its business in the South American region. Currently, it has a logistics network of 154 cities in 40 countries.
“We are happy to provide wide range of logistics solutions with CJ. We are already witnessing the efficiency of CJ Logistics technical capability that we adopted in some of our branches. Through the joint corporation launch, we hope to provide the best logistics services in the world,” said Chief Customer Officer of DSC Logistics Kevin Coleman.
Since Lee chose America as a base to grow CJ Group into a more global company, the chairman has frequently emphasized the importance of the American market.
He acquired two American firms between 2018 and 2019. CJ spent $28.56 million to acquire DSC Logistics and $1.84 billion to purchase Schwan's Company, which mainly transports frozen food.
The retail insider said CJ will soon combine its food companies in the United States as well.
Lee's ultimate goal is to bring together the logistics company and food firms to provide a combined service in America, which the chairman believes will naturally make CJ a global leader in the sector.