Nippon Express establishes new company in China's Zhejiang Province utilizing CEPA

Taking advantage of the Closer Economic Partnership Agreement (CEPA) signed between mainland China and Hong Kong, Nippon Express has recently established a new warehousing company - Nippon Express (Jiaxing) Co., Ltd. (Katsuichi Inada, President) - in the ZhaPu District of Jiaxing City in China's Zhejiang Province through its wholly owned subsidiary Nippon Express (H.K.) Co., Ltd. (Tsuyoshi Hayakawa, President). This new location will follow Hangzhou as Nippon Express' second base of operations in Zhejiang Province, and will bring the total sales structure of the Nippon Express Group in China (inclusive of Hong Kong) to 18 companies and 59 locations in 22 cities.

Nippon Express (Jiaxing) is an independent company, fully capitalized (registered capital of US$810,000) by Nippon Express (H.K.), that will provide such services as storage/conveyance of components, in-factory operations, and storage of finished products to Japanese-affiliated manufacturers opening new factories in the district. Initially staffed by two Japanese employees and several local employees, the new company plans to build up a workforce of more than 80 employees by the time it goes into full-scale operation in April 2005.

In the meantime the new company will be preparing for test runs at a client factory scheduled to begin in January 2005. The company will operate a warehouse inside the client factory as well as utilize an external bonded warehouse when demand dictates, introduce Nippon Express' proprietary REWARDS (Remote Warehousing and Distribution System), provide warehouse receiving/shipping management and location control, and offer highly tailored logistics services.

Nippon Express (Jiaxing) envisions acquiring a road transport license and an international cargo transport agent license and intends to expand its sales structure into surrounding districts where Japanese-affiliated firms such as chemical and electrical product manufacturers are planning to set up operations.