Today, SEINO HOLDINGS CO., LTD. (TOKYO and NAGOYA: 9076) and Mitsubishi Electric Corporation (TOKYO: 6503) finalized an agreement for the purchase of stock, whereby Seino will purchase 66.6 percent of the common shares of Mitsubishi Electric Logistics Corporation that are presently owned by Mitsubishi Electric. Additionally, an agreement for shareholder arrangements governing the logistics company's post-transaction business operations was reached.

The share transfer is anticipated to be completed around October 1st of this year, subject to regulatory approvals from pertinent authorities. Following this, the company will become an equity-method affiliate of Mitsubishi Electric, which will hold the remaining 33.4 percent of the shares, and a subsidiary of Seino, which will hold 66.6 percent of the shares.

In Japan, where labor shortages are impairing long-distance transportation capacities and disasters and pandemics have been demonstrated to disrupt supply chains, the significance of creating a sustainable logistics supply chain is increasing. Additional strains stem from the expanding variety of products being transported and the escalating intricacy of transportation as a result of the worldwide expansion of manufacturing facilities and distribution networks.

With its strategy centered on changing from a "LTL trucking company" to a "logistics company," Seino has been pushing initiatives to streamline its entire logistics operations, such as through the opening of new domestic bases and the expansion of logistics functions in various areas. Seino has identified its Electronics Solutions Division, Automotive Battery Logistics Division, and Healthcare Solutions Division as the "three focus areas" in its logistics operations, supporting the optimization of supply chains for global companies by improving industry-specific solutions through improved compatibility with Seino's overseas networks. This information was formulated in June 2023 and is part of the company's "Medium to Long-term Management Direction - Desired State and Roadmap 2028."