Yusen Logistics (Taiwan) Ltd. completed the acquisition procedure for Uryi Logistics Solutions Co. Ltd. (Uryi LS) ,major Taiwanese logistics company in the automobile aftermarket. Through this acquisition, we will organically link the strengths of the two companies to further strengthen automobile logistics.
In Taiwan, sales of new cars is steady against the backdrop of increased demand for new car purchases due to the reduction and exemption of commodity tax for cars that began in 2016. Among these, imported vehicles continued to increase by more than 10% and accounted for about 40% of total sales of new vehicles. Aftermarket demand is expected to increase due to increased sales of imported cars, we will pursue further expansion of automobile logistics by acquiring Uyri LS.
Uyri LS is a major logistics company with a headquarters in Taoyuan, Taipei City that handles automobile aftermarket service parts. They have approximately 18,500 m2 warehouse for auto aftermarket service parts operation in their headquarters area and provide custom-made services tailored to the needs of their customers, mainly European and American automobile company and auto parts manufacturers by using their proprietary (*) WMS to manage in-warehouse operations such as the storage and storage of a wide range of aftermarket service parts to be provided to sales companies and repair companies in Taiwan.
In northern Taiwan, we have approximately 54,000 m2 warehouse in five locations. We operate wide range of businesses that combine ocean and air freight forwarding with contract logistics. And we participate in the handling of electronic products as well as automobile components, and in e-Commerce logistics for retail industry such as cosmetics. Uyri LS 's business with European and U.S. auto manufacturers' customers will greatly expand our business.
The acquisition will enable Uyri LS to provide its customers with a variety of services, including ocean and air freight forwarding, domestic shipping, and customs clearance, which we excel in, to provide one-stop services and solutions that will help customers improve their business efficiencies. We will also be able to provide a variety of contract logistics services for Uyri LS 's specialty automobile after service parts to our customers. By combining the two businesses, we can make proposals that lead to optimization of the customer's supply chain, and we can expect synergies.
In February last year, we acquired UK based, Transfreight Automobile Logistics Europe Ltd., and its subsidiary, Transfreight Automobile Logistics Europe S.A.S, with a headquarter in France., and we are strengthening automobile logistics globally. With many inquiries from around the world, such as inventory management of automobile parts and consolidation of bases, we will continue to deeply understand the automobile market and provide supply chain logistics to meet customer needs.
<Uryi Logistics Solutions Co., Ltd Warehouse>
<Working in the Warehouse>
Uryi Logistics Solutions Co., Ltd
No.185, Sec2, Youshin Rd., Gaoshan Village, Yangmei Township,
Taoyuan Country 661, Taiwan
About 18, 500 m2
(*) WMS: Warehouse Management System