Hyundai Glovis to enter Malaysian logistics market with Lion Group
Park Man-soo, managing director of Hyundai Glovis' Smart Innovation Business Department second from left, poses with Serena Cheng, executive director of Lion Group, during a memorandum of understanding signing ceremony held at Hyundai Glovis' headquarters in Seongdong District, Seoul, on Nov. 15. Courtesy of Hyundai Glovis
By Kim Jae-heun
Hyundai Glovis will enter Malaysia's burgeoning logistics market, one of the key growth regions of Southeast Asia, through a strategic partnership with a local conglomerate.
The latest move is part of the logistics company's plan to expand its presence in the Association of South East Asian Nations (ASEAN) region. Hyundai Glovis said it signed a strategic partnership with Malaysia's Lion Group on Wednesday to seek cooperation in global business and smart logistics solutions.
This is the first time that Lion Group is joining hands with a Korean logistics company. Lion Group Executive Director Serena Cheng, who is also a member of the company's founding family, attended a ceremony to sign a memorandum of understanding at Hyundai Glovis' headquarters in Seongdong District, Seoul, on Nov. 15. Park Man-soo, managing director of Hyundai Glovis' Smart Innovation Business Department, represented the Korean company.
Lion Group is a Malaysian conglomerate that has expanded its business to a wide range of fields, including distribution, real estate development, and agriculture, as well as steel. Last year, its annual sales amounted to about $3 billion (3.97 trillion won). The company currently operates businesses in more than 10 countries around the world, including Southeast Asia, China, and the United States. Its parent group, Paxon Department Store, operates 82 stores in six Asian countries.
Through the partnership with Hyundai Glovis, Lion Group seeks to increase the efficiency of its logistics operations.
The two companies will start collaborating in the steel business according to the agreement. Hyundai Glovis plans to begin logistics consulting in early 2023, check the status of Lion Group's steel logistics and look for areas of improvement.
Hyundai's logistics arm is actively pursuing a "smart logistics solution" project that draws optimal efficiency by applying various information and communication technologies (ICTs) in the entire logistics process. By actively utilizing this, the company plans to implement new computer operating systems such as an integrated transportation management system in collaboration with Lion Group to improve logistics by increasing efficiency through logistics cost reductions.
In the future, Hyundai Glovis seeks to jointly promote logistics operations for other global companies. In addition, it plans to introduce smart logistics solutions to distribution areas where Lion Group has strengths to further enhance operational capabilities such as identifying orders, inventory and managing warehouses.
"We will use this project as an important opportunity to strengthen global competitiveness in Malaysia, the logistics hub of Southeast Asia," a Hyundai Glovis official said. "We will also actively seek ways to create synergy with nearby ASEAN countries such as Vietnam and Thailand, where Hyundai Glovis already operates."