CIMC and SCG form strategic partnership

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Oct 30, 2018, 04:21 ET

SHENZHEN, China, Oct. 30, 2018 /PRNewswire/ -- China International Marine Containers (Group) LTD. (CIMC Group) and Sumitomo Corporation Group (SCG) signed an agreement Friday on strengthening cooperation on intelligent and high-speed warehouse storage systems.

The partnership was formed on the sidelines of First China-Japan Third-Party Market Cooperation Forum, held in Beijing on Friday.

After signing, the representatives of both sides take a group photo.

The move comes at a time when China, Japan and many other countries, especially those involved in Belt and Road Initiative, are seeing rapidly growing demand for automation and intellectualization in manufacturing and logistics.

The cooperation is believed to help promote integration of advanced manufacturing, logistics infrastructure and service system, and contribute to industry upgrade of those countries.

Intelligent and high-speed warehouse storage systems play an important role in the smart logistics process. It can save land use, cut labor intensity, reduce logistics loss and enhance efficiency.

China is making efforts to transform and upgrade its industries after 40 years of fast economic growth since the reform and opening up in 1978. Smart logistics is an important part in the process.

According to National Development and Reform Commission, national logistics cost amounted to 12.1 trillion yuan ($1.7 trillion) last year, accounting for 14.6 percent of the country's gross domestic product. The ratio is approximately two times that of the United State, Japan and Germany over the same period.

China's automated logistics market has been growing at an average of 20 percent annually over the past decade, with its scale expecting to hit 110 billion yuan this year and further expanding to 214 billion yuan by 2021.

CIMC and SCG have been cooperating on a range of sectors since 1993, including material supply, vehicle, energy and chemical industry, airport, modular building, etc.

CIMC Group generated approximately 76.3 billion yuan in revenue in 2017, with net profit reaching 2.5 billion yuan.

SOURCE CIMC