Japanese company Mitsui O.S.K. Lines (MOL) has taken a 15% stake in Singapore food cold chain logistics company, Commonwealth Kokubu Logistics (CKL).
A signing ceremony took place in Tokyo on 9 December.
Singapore-headquartered food conglomerate Commonwealth Capital Pte is the majority shareholder of CKL post transaction, with a 51% stake. Japanese food distribution company Kokubu Group has a 34% stake in CKL, with remainder owned by MOL.
Through its investment, MOL said it will further expand its logistics business in Southeast Asia where “economic development and population growth are expected to drive increasing demand”.
In 2024, MOL invested in a new frozen and refrigerated warehouse development project at 8 Jalan Besut in Jurong, Western Singapore.
The facility, which is reportedly one of Asia’s largest warehouses at 500,000ft2, is one of two sites CKL operates in Singapore. At over 100m tall, the hub has capacity for up to 90,000 pallets across five floors of ambient, chilled and frozen warehouse space.
CKL plans to expand its business outside of Singapore into other Southeast Asian countries.
Meanwhile, MOL group is transforming its business portfolio to ensure profitability during a downturn in the shipping market. “By participating in logistics operations based in Singapore, we aim to expand our logistics business, which is expected to generate stable earnings,” the company said.
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