Japanese shipping company Mitsui O.S.K. Lines (MOL) has signed a capital and business alliance agreement with chemical tank specialist logistics provider Nippon Concept Corporation (NCC).
"MOL and NCC concluded the agreement with the objective of developing a comprehensive two-way strategic partnership including both partners' group companies, and steadily enhancing their businesses," said a statement from the company.
The agreement gives NCC the opportunity to globally increase its name recognition and enhance its competitiveness by integrating MOL Group companies' overseas networks with its existing networks.
For MOL, it will be an opportunity to expand business in liquid chemical product transport business, which requires considerable expertise and has the potential to generate stable profits.
Both companies are confident that the agreement will facilitate those business opportunities. The companies will also continue discussions on other issues that will mutually benefit them as they build a partnership that will maximize corporate value for both partners.
NCC plans to accept one full-time director and one part-time director from MOL on its board of directors upon the resolution of the general meeting of shareholders.
MOL plans to acquire 15% of NCC's issued shares in total through acquisition of its issued shares and subscription to new shares issued through a third-party allocation by NCC.
MOL plays a major role in the ocean shipping industry, in which the business environment is undergoing rapid changes, such as sluggish and fluctuating markets and industrial reorganizations, due to structural changes in energy demand in recent years and the ongoing trend toward local production for local consumption.
NCC, as an international logistics corporation that specializes in the transport of liquid cargo and various types of gases including chlorofluorocarbon (CFC), provides a unique service - door-to-door international multimodal transport of liquid cargo, CFC and other various gases - creating the optimal combination of transport modes and routes from shipper to destination.