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Nissho Iwai Logistics Corporation Forms Strategic Business Alliance with EXEL Group for Global Logistics Development

Jun. 24, 2002

TOKYO(June24,2002)--Nissho Iwai Logistics Corporation (NLC - President: Hiroaki Moroboshi), a Nissho Iwai subsidiary specialized in logistics and international and domestic transportation services, signed a contract pertaining to a strategic business alliance with Exel Japan Ltd. (President: John Simon Millington), a Japan-based affiliate of EXEL plc. (UK), which is the world leader in supply chain solutions. 

In recent years in Japan, many manufacturers have not only shifted their production bases offshore, but have also established global SCM (supply chain management) and aim at globalization of logistics - from parts procurement and production to sales. In addition, outsourcing of logistics operations is advancing rapidly.

The Nissho Iwai group, which aims to further expand the scope of its businesses by evolving trading company functions in the keyword areas of IT (Information Technology), FT (Finance Technology and LT (Logistics Technology), plans to develop new businesses, in concert with movements in such keyword areas, by effectively and comprehensively combining the vast business flow of the sogo shosha (general trading company) with logistics. Realizing a global strategic business alliance with the Exel group (Exel Japan), which is an international logistics service provider with global information, know how and logistics networks, and securing global logistics networks enable the expansion of logistics operations that transcend group boundaries as well as the creation of new logistics businesses.

Behind this business alliance is the fact that shippers are requesting the logistics industry to globally respond to high value-added supply chain management. Thereon, this partnership, between a leading general trading company and a company that specializes in supply chain solutions, merges fields in which the respective companies are skilled, and enables the provision of services that are attractive to a wide range of customers.

On this occasion, by NLC and Exel Japan utilizing Exel's know how and achievements in the field of 3rd Party Logistics, along with the global network, development of new businesses will be accelerated. Integration of transportation and customs clearance services at certain sales and operation bases is also being considered for cost reduction.

This strategic business alliance will be steered toward capturing targeted business with the mutual consent of both parties, with both NLC and Exel Japan maintaining their current sales and operational systems. 

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