China's Cold Chain Market Growing by 10 Trillion Won Annually
Hyundai Glovis is accelerating its new logistics business outside of its affiliates and the automotive sector. In particular, it has officially announced its entry into the Chinese refrigerated and frozen logistics (Cold Chain) market, which grows by about 10 trillion won annually, and is stepping up its efforts in the business.
According to the logistics industry on the 5th, Hyundai Glovis plans to support the entry of Korean agricultural and marine products into China by operating the Korea Agro-Fisheries & Food Trade Corporation (aT)'s Korean Agro-Fisheries & Food Logistics Center established in Qingdao, Shandong Province, China, over the next five years until 2025.
The Qingdao logistics center is a complex logistics facility that aT established overseas for the first time in 2015 to expand exports of Korean agricultural and marine products. Hyundai Glovis will start with warehouse storage and inland transportation tasks and eventually handle sea transportation and customs clearance to provide integrated services.
The reason Hyundai Glovis is targeting the Chinese cold chain market is due to its rapid growth. According to the China Research Center of the Korea Maritime Institute, the cold chain market size, which was 180 billion yuan (31 trillion won) in 2015, rose sharply every year to 255 billion yuan (44 trillion won) in 2017 and 339 billion yuan (58 trillion won) in 2019.
Experts expect the related market to grow further as the Chinese government actively supports the development of cold chains for the safe and fresh supply of agricultural and marine products through policies.
Hyundai Glovis plans to handle local fresh food logistics as well as Korean agricultural products in the future. It intends to apply the know-how accumulated from its automotive logistics business to the cold chain business to establish an early foothold by focusing its capabilities. Through this, the company aims to diversify its sales portfolio into automotive logistics, finished car sea transportation, and new businesses (cold chain).
A Hyundai Glovis official said, "By stably operating the Qingdao logistics center, we will help Korean export companies enter the Chinese market," adding, "We will fully demonstrate our capabilities as a global logistics company in the rapidly growing Chinese cold chain market."
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