News / Hyundai Glovis expands logistics business with Thailand JV

© Chalermphon Srisang

Logistics unit Hyundai Glovis has entered the Thai market, setting up Hyundai Glovis Logistics Thailand, a joint-venture with domesticlogistics companies and automobile parts manufacturers.

Hyundai Glovis will work closely with local food conglomerate Charoen Pokphand (CP) Group, agreeing to assign 150 electric trucks a year to transport goods to 7-Eleven stores throughout Bangkok.

The Thai subsidiary’s opening yesterday was attended by Hyundai Glovis CEO Kim Jung-hoon and CP Group vice-chairman Korsak Chairasmisak.

In addition, as CP Group needs to replace and add trucks every year, Hyundai Glovis will gradually expand its electric truck fleet over the next five years, as it expects to export more food products to neighbouring countries, including Cambodia and Malaysia.

CP Group and Hyundai Glovis have signed an MOU to develop various business models based on ‘green logistics’, using hydrogen-powered vehicles and drones and robots as well as the electric trucks.

Thai Summit Group, a major Thai automobile parts producer, is another JV partner and will work with Hyundai Glovis on its transport and warehousing needs. Many Japanese automobile makers have shifted production to Thailand, resulting in it becoming a major vehicle parts manufacturing hub. Thai Summit is also exploring transporting finished vehicles from Indonesia to Thailand, establishing an automobile logistics supply chain.

Hyundai Glovis said: “We  will consolidate our position as a leading global logistics company by expanding the Thailand-Vietnam-Indonesia route to neighbouring ASEAN countries.”