Mitsui OSK Lines & NCC Ink Strategic Alliance Agreement

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(Image Courtesy: Ship Reviews)

Mitsui O.S.K. Lines President & CEO, Junichiro Ikeda and Nippon Concept Corporation President, Takayoshi Matsumoto today announced the conclusion of a capital and business alliance agreement. The agreement will aim at developing a comprehensive two-way strategic partnership including both partners’ group companies.

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, the companies said.

Objectives of the Alliance

To withstand the challenges of rapid changes in the shipping industry MOL devised policies under ‘Rolling Plan 2017’, to select business fields that have a clear competitive edge. Some of the fields in which it strategically allocates human resources and investment include chemical tanker and logistics. At the same time, it is promoting a study on entering the tank container business

NCC, as an international logistics corporation that specialises 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.

Under MOL’s expansion policy in Japan and overseas it has worked to firmly establish the NCC brand on a global scale and acquire new customers, with the aim of expanding its business worldwide, a market it entered seven years ago, MOL said.

Details of Capital Alliance

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.

Details of Business Alliance

  • Share overseas networks and business networks
  • Joint business and service operations
  • Joint technology research and development
  • Joint purchasing
  • Proactive use of both companies’ services
  • Personnel exchange
  • Other beneficial matters to enhance the businesses of both companies

Sea News, February 13